SEC to file consolidated 70-page response in Binance legal battle by December 4
Comprehensive response on tokens and investment contracts
Despite recent signs of improving relations between U.S. authorities and the crypto industry, the Securities and Exchange Commission (SEC) continues its legal battles with Binance.
The latest development involves a U.S. federal court granting the SEC’s request to file a comprehensive response to Binance's motion to dismiss the lawsuit against the crypto exchange and its former CEO Changpeng Zhao.
Previously, the SEC sought court permission to exceed the standard page limit for legal filings, citing the complexity of the case. The court approved the request, allowing the SEC to file a consolidated response of up to 70 pages.
Observers note that this ruling provides the SEC with additional leeway to address legal issues surrounding Binance US's operations.
Comprehensive response on tokens and investment contracts
Binance, however, maintains its motion to dismiss the amended complaint, arguing that it includes previously rejected claims suggesting all token sales on the secondary market qualify as securities transactions.
The crypto exchange also criticized the SEC for a lack of regulatory clarity regarding virtual assets.
"The SEC continues to refuse to articulate any standard for courts, parties, or market participants to determine which crypto transactions qualify as investment contracts," Binance representatives stated.
The SEC, in turn, announced plans to consolidate all requested standards into a single document to improve judicial efficiency and avoid redundancy. The response is due by December 4.
Amid criticism of the U.S. Securities and Exchange Commission's (SEC) aggressive stance towards the crypto industry, the agency has reported enforcement penalties for 2024. In the current fiscal year, the SEC set a record by imposing $8.2 billion in fines, despite initiating 26% fewer enforcement cases (583) compared to the previous year.
