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Binance and CEO Changpeng Zhao Seek Dismissal of SEC Lawsuit

In a recent development, Binance CEO Changpeng Zhao (CZ) and the cryptocurrency exchange have jointly filed a motion to dismiss the lawsuit brought against them by the United States Securities and Exchange Commission (SEC).

The filing, made on September 21 in the United States District Court for the District of Columbia, argues that the SEC exceeded its authority in the case.

The 60-page petition, presented by legal representatives of Binance and CZ, contends that the SEC failed to provide clear guidelines for the cryptocurrency industry prior to initiating the lawsuit.

This alleged lack of regulatory clarity resulted in retroactive imposition of the SEC’s authority over the sector, according to the defense.

Binance Holdings and CZ’s joint motion to dismiss the SEC lawsuit made against them.

“It is clear that the SEC’s lawsuit has no foundation in the currently enacted securities laws.“

Binance Challenges SEC’s Misunderstanding of Crypto Laws and Faces Regulatory Scrutiny

Lawyers representing Binance have emphasized that the Securities and Exchange Commission (SEC) has fundamentally misunderstood securities laws and their application to cryptocurrencies.

In a joint effort, Binance and its CEO, Changpeng Zhao, filed a motion to dismiss the SEC’s charges against them.

Furthermore, Binance.US, the American arm of the exchange operated by BAM Trading Services, submitted a separate 56-page filing on the same day, seeking the dismissal of the charges against them.

Moreover, The SEC initiated legal action against Binance and its affiliates on June 5, accusing the exchange of offering the sale of unregistered securities and operating unlawfully within the United States.

This lawsuit followed a similar move by the Commodity Futures Trading Commission (CFTC), which sued the cryptocurrency trading platform three months prior for failure to register and non-compliance with its guidelines.

The ongoing regulatory scrutiny has significantly impacted trading activity on Binance.US, resulting in a staggering decline of over 98% in daily trading volumes since September 2022.

As a consequence, Binance.US had to lay off 30% of its remaining workforce on September 13, with the departure of its president and CEO, Brian Shroder.

finally, The legal battle between the cryptocurrency trading platform and the regulatory authorities continues, shaping the future regulatory landscape for cryptocurrencies in the United States.

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