{"id":10317,"date":"2024-01-23T12:56:09","date_gmt":"2024-01-23T12:56:09","guid":{"rendered":"https:\/\/coinengineer.io\/blog\/?p=10317"},"modified":"2024-01-23T12:56:43","modified_gmt":"2024-01-23T12:56:43","slug":"binance-and-sec-face-off-in-court","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/binance-and-sec-face-off-in-court\/","title":{"rendered":"Binance and SEC Face Off in Court!"},"content":{"rendered":"

Binance<\/strong>, the world’s largest cryptocurrency exchange, faced off against the SEC in court on Monday in an effort to have the regulator’s lawsuit against it dismissed.<\/p>\n

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You might like: Unusual Price Movement in OKB, OKX CEO Makes Statement!<\/em><\/strong><\/span><\/a><\/p>\n<\/blockquote>\n

Both sides faced questions from the judge about why certain cryptocurrencies should be considered securities and subject to SEC<\/strong> rules.<\/p>\n

During the hearing, U.S. District Judge for the District of Columbia Amy Berman Jackson<\/strong> pressed both sides on whether they were making a “stretch” in their arguments.<\/p>\n

Whether other assets traded on Binance meet or do not meet the criteria of the Howey test, a set of parameters used by the SEC<\/strong> to determine whether an asset is a security.<\/p>\n

In June, the SEC sued Binance Holdings<\/strong> and former CEO Changpeng Zhao<\/strong>, accusing the cryptocurrency exchange of lying to customers, not restricting U.S. investors’ access to Binance, misdirecting capital to separate investment funds owned by Zhao, and operating as an unregistered exchange.<\/p>\n

The SEC also said that 12 tokens on the exchange, including BNB<\/strong> and BUSD<\/strong>, are securities.<\/p>\n

The event on Monday was the second major showdown between the agency and cryptocurrency exchanges this month. Coinbase<\/strong> and the SEC<\/strong> faced off in court separately last week in a separate case.<\/p>\n

Howey Disagreement (Binance)<\/span><\/h2>\n

Judge Jackson criticized Binance for how its attorneys portrayed the Howey<\/strong> Test during Monday’s hearing.<\/p>\n

“Howey<\/strong> says an investment contract is an offer to sell, a contract, transaction, or plan,” Jackson said. “One of three things. It wasn’t talking about a contract-based transaction or plan.”<\/p>\n

Binance’s representative attorneys insisted that a real contract is necessary for an asset to be a security. The judge later backed down, arguing that case law says the law was designed to be broad.<\/p>\n

Later in the hearing, Jackson<\/strong> asked SEC attorneys about the criticism they have received for being unclear about how the rules will be applied to the cryptocurrency industry.<\/p>\n

The SEC’s attorney<\/strong> said he disagreed that the agency has made contradictory statements, pointing to guidance the agency has issued over the years.<\/p>\n

The SEC attorney said, “Howey is clear and you don’t need a regulator to come to you and tell you specifically that you might be violating securities laws.”<\/p>\n

In the SEC’s view, Binance’s constant promotion of its business and its BNB<\/strong> and BUSD<\/strong> tokens created reasonable expectations of profit for people who bought those tokens. Binance’s attorneys, on the other hand, argued that the mere fact of promotion cannot be a factor by itself, because any business promotes itself.<\/p>\n

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Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don\u2019t forget to follow us on\u00a0Telegram<\/strong><\/a>,\u00a0YouTube<\/strong><\/a>\u00a0and\u00a0Twitter<\/strong><\/a> for the latest news and updates.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Binance, the world’s largest cryptocurrency exchange, faced off against the SEC in court on Monday in an effort to have the regulator’s lawsuit against it dismissed. You might like: Unusual Price Movement in OKB, OKX CEO Makes Statement! Both sides faced questions from the judge about why certain cryptocurrencies should be considered securities and subject<\/p>\n","protected":false},"author":1,"featured_media":10318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[22,40,486,58,39],"class_list":["post-10317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-binance","tag-bnb","tag-busd","tag-cryptocurrency","tag-sec"],"yoast_head":"\nBinance and SEC Face Off in Court! - Coin Engineer<\/title>\n<meta name=\"description\" content=\"Binance faced off against the SEC in court on Monday in an effort to have the regulator's lawsuit against it dismissed.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/binance-and-sec-face-off-in-court\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Binance and SEC Face Off in Court! 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