Binance used legal definition of ‘suffering’ to sue, says SEC
Binance's arguments to dismiss the case from the US securities regulator are based on an incorrect legal analysis and have no legal basis, the regulator has argued.
In a Nov. 7 court filing, the SEC rejected Binance's earlier bid to toss the regulator's lawsuit, saying no court had accepted Binance's “suffering interpretation of the law.”
The SEC filed a lawsuit against Binance in June, accusing Binance.US and its founder Changpeng “CZ” Zhao of selling unregistered securities without registering as an exchange in the United States.
Binance said the SEC failed to promote crypto regulations, misinterpreted securities laws and applied them to crypto, and said the matter was beyond its jurisdiction.
In a recent rebuttal, the SEC said Binance “never complied” with federal securities laws, a “deliberate choice.”
“Bins's chief compliance officer politely but succinctly described the matter, saying that Binns ‘admits that it is operating an unauthorized securities exchange like a fking in the USA brother.' It was right.”
He added to Binance's arguments comparing crypto to “supermarket items like oranges”. […] They are absurd” and the crypto exchange's crypto sales are investment contracts in Hawaii test.
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The regulator reiterated its claims that BNB's first coin violated securities laws and Binance USD (BUSD) with profit-sharing, Vault and Earn programs are investment contracts.
It also rejected Binance's contention that the lawsuit violates the doctrine of substantive questions — In 2022, the United States Supreme Court ruled that Congress would not give the agency authority, which other crypto companies have cited as an attempt to push back against the SEC's claims.
The SEC said that granting Binance's waiver would “remove decades of fundamental precedent under which the nation's securities laws have operated” and replace it with a “rigid framework” that promotes a “broader, more flexible regime” of existing laws.
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