Binance CEO Changpeng “CZ” Zhao and his cryptocurrency trade has filed a joint movement requesting the dismissal of the USA Securities and Change Fee (SEC) lawsuit in opposition to them.
In line with a Sept. 21 filing to the USA District Courtroom, each Binance Holdings and Zhao claimed that the monetary regulatory had overstepped its authority within the lawsuit in opposition to them.
Within the 60-page petition legal professionals for Binance and Zhao accused the SEC of failing to introduce clear pointers for the sector forward of its lawsuit in opposition to the crypto trade and consequently, had imposed its regulatory authority over the crypto sector retroactively.
“The SEC pursues these novel theories retroactively, looking for to impose legal responsibility for gross sales of crypto belongings that occurred way back to July 2017, earlier than the SEC offered any public steerage regarding cryptocurrency.”
“It’s clear that the SEC’s lawsuit has no basis within the at present enacted securities legal guidelines.”
Legal professionals for Binance additionally asserted that the regulator basically misinterprets securities legal guidelines and their software to crypto belongings.
“In trying to say regulatory energy over the crypto business, the SEC distorts the textual content of the securities legal guidelines,” learn the submitting.
Along with Binance and Zhao’s petition, the American outfit of the crypto trade, Binance.US — legally often called BAM Buying and selling Companies Inc. — additionally moved to have the costs made in opposition to it dismissed in a seperate 56-page submitting made on the identical day.
The SEC sued Binance and its affiliates on June 5, urgent a sequence of fees that alleged Binance of providing the sale of unregistered securities and for working illegally in the USA.
The SEC’s transfer in opposition to Binance got here three months after the Commodity Futures Buying and selling Fee (CFTC) also sued for Binance for failing to register with it and for breaking a lot of its pointers.
Buying and selling exercise on Binance.US have been hit laborious by the continued regulatory motion in opposition to the trade, with daily trading volumes slumping greater than 98% from Sept. 2022. On Sept. 13 Binance.US laid off 30% of its remaining workforce, with its president and CEO Brian Shroder additionally departing the agency.