In a key development within the cryptocurrency industry, Binance.US, a subsidiary of the global crypto exchange Binance, is significantly fortifying its legal defense. This move comes in response to allegations made by the U.S. Securities and Exchange Commission (SEC) regarding securities violations.
The team now includes five renowned attorneys: Sheehan H. Band, Levi Giovanetto, Daniel J. Davis, Christian Kemnitz, and David Luger. These legal professionals are known for their expertise in SEC investigations and complex legal proceedings, indicating a well-calculated strategy by Binance.US to confront the SEC’s claims head-on.
Nature of the SEC Allegations
At the core of this legal tussle are accusations from the SEC that Binance.US, alongside Binance Holdings and its co-founder Changpeng ‘CZ’ Zhao, have engaged in securities-related violations. Binance counters these claims, arguing that the SEC’s approach to cryptocurrencies represents an overreach of its regulatory authority and a misinterpretation of the laws about digital assets.
The defense is particularly critical of the SEC’s use of the Howey Test to classify digital assets as securities. They argue that this represents an unwarranted expansion of the SEC’s jurisdiction over cryptocurrency transactions and assets.
Disputing Evidence and Regulatory Overreach
Binance’s legal team also opposes the SEC’s attempt to incorporate evidence from a separate legal settlement between Binance and the U.S. Department of Justice into the current lawsuit. They invoke the “major questions doctrine,” suggesting that the SEC is extending its reach beyond congressional directives, especially in the absence of clear regulations governing cryptocurrencies.
Implications and Future Outlook
As the legal battle unfolds, the outcome could set a precedent for the regulatory landscape of cryptocurrency in the United States. Binance.US, backed by its formidable legal team, is preparing for an intense courtroom showdown, hoping to persuade the court to dismiss the SEC’s case and redefine the regulatory boundaries for digital currencies.
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