Top crypto exchange Binance made a big move in the SEC case. In a court filing on Thursday, Binance and Chief Executive Changpeng “CZ” Zhao moved to dismiss the lawsuit filed against them by the U.S. Securities and Exchange Commission (SEC).

Zhao argued in a 60-page petition that the regulator had overstepped its authority by suing them. SEC; It filed a lawsuit against the exchange in June, alleging various violations, including mishandling customer funds, deceiving investors and regulators, and violating securities laws.

binance

In its petition to dismiss the case, the exchange accuses the regulator of trying to retroactively impose fines before issuing any public guidance on cryptocurrency. Binance.US, formerly known as BAM Trading Services, also requested the charges against him be dropped in a separate 56-page petition.

Crypto community reacts

XRP enthusiast and legal expert Bill Morgan points to a section of the SEC's brief opposing the SEC's attempt to bring all token sales classified as securities under its jurisdiction, including those sold as blind trades on exchanges.

Morgan believes this is one of the reasons why the SEC is appealing Judge Torres' decision in the Ripple case. A section of the Binance petition says:

“In other words, the SEC improperly asserts that its regulatory jurisdiction extends to the underlying assets themselves (like the oranges in Howey) even if those assets are stripped of the potentially relevant features of an 'investment contract' and sold in blind buy or put transactions on exchanges.” .”

Morgan, SEC's Binance and SEC v. He claims that he anticipated that other defendants in other exchange-related cases would use this argument because other exchanges and dealers were using blind or bid sales.

The XRP enthusiast pointed out a quote referencing the Ripple case. Binance US or BAM defendants seek to rely on Judge Torres' decision regarding blind or bid-type transactions on secondary exchanges.