On November 5, news emerged that Binance and its founder Zhao Changpeng (CZ)'s legal team filed a motion on November 4 to dismiss the U.S. Securities and Exchange Commission (SEC)'s amended lawsuit allegations, according to CoinDesk. The legal team accused the SEC of lacking clarity in its regulatory standards for crypto assets, arguing that the SEC failed to clearly define which crypto asset transactions constitute 'investment contracts'.

The lawyers stated in the documents that the SEC insists on treating nearly all transactions involving crypto assets as securities transactions, even blind resales in the secondary market, as some buyers may expect asset appreciation. At the same time, the lawyers pointed out that the SEC's regulatory standards for assets like Ethereum are arbitrary, recently retracting its claims that Ethereum transactions constitute investment contracts without justification. This lawsuit is unrelated to the U.S. Department of Justice's criminal charges against Zhao Changpeng and Binance, the latter of which admitted to violating anti-money laundering and sanction regulations in 2023 and paid a $4.3 billion fine.