In a 60-page petition, Binance argues that the Securities and Exchange Commission (SEC) exceeded its authority when it filed a lawsuit against the company.
The SEC accused Binance of various wrongdoings, including mishandling customer funds, misleading investors and regulators, and violating securities rules.
Binance and CEO Changpeng Zhao (CZ) claim that the SEC is retroactively imposing penalties without providing clear guidance on cryptocurrencies.
Binance’s Response
In the court filing, Binance’s lawyers stated that the SEC is distorting the securities laws to assert regulatory power over the crypto industry.
The SEC’s lawsuit also aims to extend its jurisdiction globally to cover transactions on foreign cryptocurrency platforms.
A separate filing seeks to dismiss the lawsuit against Binance’s US division, BAM Trading Services. This move may have been the original intention of SEC Chair Gary Gensler.
Earlier this week, Binance won a small victory against the SEC. A federal judge denied the SEC immediate access to Binance.US’s software, suggesting that the SEC should make more specific requests.
Jeremy Hogan, an attorney, pointed out the irony of Binance being sued by both the SEC and the Commodity Futures Trading Commission (CFTC). The CFTC claims that Binance’s stablecoin BUSD is a commodity, while the SEC claims it is a security.
BNB Outlook
The price of Binance’s native token, BNB, has been unstable and dropped 1.5% on the day. Currently, it is trading at $211, down 31% since the SEC lawsuit in June and nearly 70% from its all-time high of $686 in May 2021.
Despite the drop, BNB has performed better than many decentralized finance (DeFi) tokens, which have significantly declined by over 90% in this bear market.
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