Binance and SEC lawyers present arguments on crypto as a security: Report

In a lawsuit filed by the United States Securities and Exchange Commission, lawyers representing cryptocurrency exchange Binance asked a judge to dismiss the case after arguing that certain tokens qualify as securities.

At a hearing in the United States District Court for the District of Columbia on January 22, Binance's legal team presented arguments on how the SEC should treat cryptocurrencies under the current regulatory and legal framework. According to a Reuters report, Binance's lawyer said the SEC is taking a contradictory approach against crypto companies, “speaking to the industry.” [to] Enter and register, at the same time closing the door with their other hand, denying any proper way to do so.

According to reports from the court, the SEC said that Hawaii's test for securities is “transparent” for all assets, including crypto, and that regulators are not required to warn companies that they may violate securities laws. Judge Amy Berman Jackson said she will take the SEC and Binance's arguments under advisement.

Judge Jackson told the SEC's legal team that “at the end of the day, they're trying to say that all digital assets have a securities label.” “If you're not, where are the boundaries you're talking about?”

SEC v. The Binance case could have significant implications for crypto companies operating in the United States. Many companies have said authorities do not provide a clear regulatory framework to operate legally, leading to enforcement actions against major companies including Binance, Coinbase, Ripple and Kraken.

RELATED: SEC Wants Binance to Admit Guilty in Its Own Case

Binance, Binance.US and former Binance CEO Changpeng Zhao announced a $4.3 billion settlement with the US Department of Justice, Treasury and Commodity Futures Trading Commission in November 2023. Zhao pleaded guilty to one felony count as part of the settlement and will be sentenced on February 23.

The Jan. 22 hearing was originally scheduled for Jan. 19, but was delayed due to weather. Cointelegraph reached out to Binance's legal team but did not receive a response at the time of publication.

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