SEC Claps Back at Binance: Lawsuit Dismissal is a No-Go!

Binance accused of using flawed legal interpretation to dismiss lawsuit, SEC claims

SEC accuses Binance of using a skewed interpretation of the law to evade lawsuit.

It seems Binance’s attempt to dismiss the lawsuit from the United States Securities and Exchange Commission (SEC) has hit a major roadblock. The regulator is not buying into Binance’s arguments, calling them out as an “incorrect legal analysis” and devoid of any basis in law. Ouch!

In a recent court filing, the SEC minced no words and shot down Binance’s bid to toss the regulator’s suit. According to the SEC, no court has ever embraced Binance’s “tortured interpretation of the law.” Burn! Binance is going to need some serious Crypto Balm for that sick burn.

For those not in the know, the SEC sued Binance back in June, accusing it, along with Binance.US and its founder Changpeng “CZ” Zhao, of selling unregistered securities and unlawfully operating as an exchange in the United States. Binance, ever the rebel, fought back, claiming the SEC failed to provide clear crypto guidelines, misinterpreted securities laws, and went beyond its jurisdiction. You’ve got to admire their audacity!

But the SEC isn’t buying any of it. In its latest comeback, the regulator claimed that Binance “never complied” with federal securities laws and accused them of making a “deliberate choice.” Shots fired, indeed!

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To make matters worse, the SEC brought forward some damning evidence. They quoted Binance’s Chief Compliance Officer, who brazenly admitted that Binance was, and I quote, “operating as a fking unlicensed securities exchange in the USA bro.” Well, well, well, looks like someone let the cat out of the bag!

The SEC didn’t stop there. They called Binance’s comparison of crypto to supermarket items like oranges “absurd.” Touche! And they asserted that Binance’s crypto sales are nothing but good ol’ investment contracts, according to that infamous Howey test. Can’t escape the scrutiny, can you, Binance?

But wait, there’s more! The SEC also challenged Binance’s attempt to use the major questions doctrine—a U.S. Supreme Court ruling claiming Congress doesn’t delegate authority to agencies—as a shield. The SEC dismissed this argument and warned that granting Binance’s dismissal request would send shockwaves through the nation’s securities laws, leaving us with a “rigid framework” and reversing the “broad, flexible regime” that we currently enjoy. Talk about shaking things up!

So, Binance, it seems like the SEC has given you a taste of your own medicine. Your arguments have been debunked, your claims ridiculed, and your reputation tarnished. It’s time to regroup, reevaluate, and face the music. Will you be able to sway the SEC with your charm and wit? Only time will tell!

Keep an eye out for the next thrilling chapter in this SEC vs. Binance saga. And remember, in the world of crypto, there are no shortcuts!

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