Lawyers for Binance and CZ filed a motion to dismiss the amendments in the SEC lawsuit on the grounds of failing to recognize that crypto assets are not securities.
The latest development is that lawyers representing the cryptocurrency exchange Binance and its founder Changpeng Zhao (CZ) have filed a motion to dismiss the SEC's lawsuit. Last month, the U.S. securities regulator amended its original complaint regarding 'crypto asset securities,' to which Binance responded on Monday.
Binance SEC lawsuit: CZ files a motion to dismiss the complaint.
The cryptocurrency exchange Binance argued in recently submitted court documents that the amended complaint against it only 'verbally' acknowledged the previous ruling that crypto assets are not inherently securities.
Binance's documents also claim that the regulators failed to recognize the full implications of this ruling, specifically that the resale of these assets in the secondary market long after the initial issuance by developers does not constitute a securities transaction. The cryptocurrency exchange pointed out:
In addition, Binance criticized the U.S. Securities and Exchange Commission for failing to provide any regulatory clarity on digital assets. The cryptocurrency exchange argued that the agency did not clearly specify which crypto assets qualify as investment contracts.
The documents state: 'The SEC continues to refuse to clearly establish any standard for courts, litigants, or market participants to understand which crypto asset transactions qualify as investment contracts and which do not.' This highlights the ambiguity of the SEC's regulatory approach, which under Gary Gensler has caused crypto companies to lose over $400 million.
Despite these regulatory hurdles, the cryptocurrency exchange continues to expand its product suite in the market. Recently, it launched a crypto solution for wealth managers.
The cryptocurrency exchange announced the establishment of a $3 million relief fund.
Unlike the SEC lawsuit, the cryptocurrency exchange Binance announced a $3 million relief fund for the severe flooding in Spain. Binance CEO Richard Teng announced this news on the X platform.
This funding will be used to support emergency relief efforts for communities recently affected by natural disasters. Donations from the Binance Charity Foundation will enable the Spanish Red Cross to provide essential resources for those in need. Binance Spain General Manager Javier García de la Torre stated:
