Circle weighs in on the SEC and Binance case, arguing that stablecoins are not securities.

Circle, the company behind the USD Coin (USDC) stablecoin, has weighed in on the case of the United States Securities and Exchange Commission (SEC) against crypto exchange Binance, arguing that stablecoins are not securities.

In court filings, he argued that assets tied to the US dollar, such as Binance USD (BUSD) or USDC, are not securities because people who buy the assets expect no profit from holding them. According to Circle, payment stablecoins do not have the “characteristics of an investment contract” per se.

On June 5, the SEC sued Binance for several legal violations. The regulator has imposed a total of 13 charges against the crypto exchange. Payments are unregistered security sales of BNB tokens and BUSD tokens. The SEC also alleges that Binance failed to register as a broker-dealer clearing agency and was operating illegally in the United States.

On September 22, Binance and its CEO Changpeng Zhao asked the court to dismiss the SEC's lawsuit. Binance and Zhao say the SEC overstepped its authority in its lawsuit against them. In the petition, lawyers for Binance and Zhao emphasized their belief that the SEC failed to introduce clear guidelines to the sector before the transition case and relinquished its authority over the industry.

Related: Crypto Lawyer on SEC: ‘There's a Problem with Saying All NFTs Are Securities'

Apart from cryptocurrencies and exchanges, the SEC also said non-volatile tokens (NFTs) are securities. In the year On August 28, the SEC filed a lawsuit against the entertainment company Impact Theory for selling the NFT collection. The SEC says NFTs are unregistered securities.

Outside of Impact Theory, on September 13, the SEC charged the firm behind the Stoner Cats NFT collection. According to the SEC, the organization facilitates unregistered securities sales to offer NFTs to the public.

Magazine: Binance.US by SEC, Mt. Gox scores on late payments and other news: Hodler's Digest