Key takeaways:
- The Chief Executive Officer of Binance and his cryptocurrency exchange have filed a joint motion asking the US SEC to drop its legal action against them.
- In a separate 56-page file on the same day, Binance US reportedly requested the dismissal of the charges in addition to Binance and Zhao’s petition.
The Chief Executive Officer of Binance, Changpeng “CZ” Zhao, and his cryptocurrency exchange have filed a joint motion asking the United States Securities and Exchange Commission (SEC) to drop its legal action against them.
Binance Holdings and Zhao both asserted that the financial regulatory body had overstepped its bounds in bringing the case against them, according to a document sent to the United States District Court on September 21.
Attorneys for Binance and Zhao said in the 60-page petition that the SEC had retroactively imposed its regulatory authority over the cryptocurrency industry since it had not introduced clear standards for the industry before filing a complaint against the crypto exchange.
“The SEC pursues these novel theories retroactively, seeking to impose liability for sales of crypto assets that occurred as far back as July 2017, before the SEC provided any public guidance concerning cryptocurrency.”
According to lawyers representing Binance, the regulator fundamentally misinterprets securities regulations and how they apply to digital assets. The document states:
“In attempting to claim regulatory power over the crypto industry, the SEC distorts the text of the securities laws,”
In a separate 56-page file on the same day, Binance US, the American branch of the cryptocurrency exchange, which is officially known as BAM Trading Services Inc., reportedly requested the dismissal of the charges in addition to Binance and Zhao’s petition.
On June 5, the SEC filed a lawsuit against Binance and its affiliates, alleging that Binance had engaged in improper business practices in the US and offered the sale of unregistered securities.
Three months before the SEC’s action against Binance, the Commodity Futures Trading Commission (CFTC) had filed a lawsuit against the company for failing to register with it and for violating numerous rules.
CZ recently dispelled rumors that the platform intended to eventually remove stablecoins for European customers. Concerning the EU’s MiCA, CZ warns about upcoming stablecoin delistings. The impending MiCA rule from the EU is what spurs the probable delistings.
