Judge Clears Pending Motions in SEC vs Binance Lawsuit, Accepts USDC Issuer Circle's Brief
Summary:
A senior Columbia district court judge has addressed several pending motions in the ongoing lawsuit between the US SEC and crypto exchange Binance. Notably, the judge accepted an amicus brief from USDC issuer, Circle, which argues that assets like USDC aren't securities as they don't possess features of an investment contract. The SEC had previously filed a lawsuit against Binance alleging unregistered securities sales, among other charges. Binance and its CEO, Changpeng Zhao, have submitted a request for the lawsuit's dismissal, stating the SEC had overstepped its jurisdiction.
In the legal case involving Binance cryptocurrency exchange and the U.S. Securities and Exchange Commission (SEC), several pending motions have been addressed by a high-ranking judge in the district court of Columbia. These motions were resolved prior to a critical court hearing. Notably, an amicus brief from Circle, the issuer of the USD Coin (USDC) stablecoin, was accepted by the judge just before the Oct. 12 hearing. Circle submitted this motion on Sept. 29 as part of the ongoing legal tussle between the SEC and Binance, arguing that dollar-pegged assets like USDC cannot be considered securities as buyers do not anticipate profits from these stablecoins. Circle contends that these so-called payment stablecoins lack the characteristics of an investment contract.
Judge Amy Berman Jackson recognized Circle as an amicus curiae, a party providing expert information to the court without representing either party involved – in this case, Binance and its CEO CZ. She also reiterated that an amicus curiae can only contribute to oral debates with the court's consent.
An amicus curiae, or "friend of the court", is neither a plaintiff nor defendant, but can provide the judge with valuable insights or data relevant to the case. Whether an amicus brief is considered is up to the discretion of the court.
For context, Binance was slapped with a lawsuit by the SEC on June 5, which launched 13 counts against the crypto platform, including the unregistered sale of BNB and BUSD tokens. In addition, the SEC maintains that Binance acted unlawfully in the U.S by failing to register as a broker-dealer clearing service.
On Sept. 22, Binance and its CEO, Changpeng Zhao, formally requested the court to reject the SEC's lawsuit, arguing the SEC had exercised undue influence. The legal representatives of Binance and Zhao contended in their petition that the SEC did not determine clear rules for the industry before initiating the legal action, and unjustly claimed jurisdiction over the business in retrospect.
Published At
10/12/2023 11:53:25 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.