Binance Files Motion to Dismiss SEC’s Lawsuit

The leadership of Binance has filed a motion against a lawsuit brought by the United States Securities and Exchange Commission (SEC) nearly a year ago.

Binance, a top-ranked crypto exchange known for its responsive trading services for various types of crypto investors, faced this suit from the SEC in June 2023. The charges included allegations of unregistered securities offerings. The lawsuit was accompanied by other actions from U.S. regulatory authorities. Binance has since settled some charges imposed by other bodies and succeeded in having certain SEC charges dropped.

On November 4, 2024, lawyers representing Binance and its former CEO Changpeng Zhao (CZ) filed a motion to dismiss the SEC’s lawsuit. The motion claims that the SEC’s amended complaint pays “lip service” to a prior court ruling that established crypto assets as not inherently securities. However, the SEC, according to Binance, fails to accept this ruling’s conclusion — that secondary market resales of crypto assets, long after their initial distribution, do not constitute securities transactions.

In essence, Binance argued that the SEC lacks clear regulatory guidelines on crypto and criticised the agency for its “arbitrary” decisions on classifying digital asset transactions as securities transactions.

It will be interesting to observe whether this motion leads to a favourable outcome for Binance.

In September of this year, former Binance CEO CZ was released from jail after serving two months on charges related to offering crypto services in the U.S. without registration with the appropriate regulatory authorities.

BNB price action

The current trade price of BNB coin, native token of the crypto exchange, is $558. This trade price is 7.8% down over the last 7 days period.

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