- Binance filed a motion to dismiss the SEC’s case against it and its founder, CZ.
- Lawyers Bill Morgan and Jeremy Hogan share insights, highlighting regulatory complexities.
- Hogan humorously speculates on the “Holy Trifecta” as Binance faces legal action from the CFTC, SEC, and potential scrutiny from FinCEN.
The largest crypto exchange, Binance, has filed a motion to dismiss the legal case brought against it and its founder, Changpeng Zhao, by the U.S. Securities and Exchange Commission (SEC).
The exchange filed the motion on Thursday with the U.S. District Court. In response to the development, prominent pro-crypto lawyers Bill Morgan and Jeremy Hogan took to X (formerly Twitter) to share their perspectives on the matter.
Bill Morgan pointed out a passage from Binance’s motion. The passage challenges the SEC’s attempt to expand its jurisdiction to encompass all token sales as securities, even when such transactions occurred on exchanges as blind bid-ask deals.
“No wonder [the SEC] urgently seeks an interlocutory appeal of the Torres decision,” Morgan remarked. Notably, the lawyer implied that the U.S. regulator was racing to win permission to appeal the recent judgment granted to Ripple about the classification of XRP as non-security.
On the other hand, Jeremy Hogan highlighted the intriguing sequence of events that have followed the Binance exchange in recent times. He noted the Commodity Futures Trading Commission (CFTC) suing Binance in March, alleging that the BUSD token was a commodity. Hogan then pointed out that just three months later, the SEC sued Binance, asserting that BUSD should be classified as a security.
In a sarcastic tone, he speculated about the possibility of the Financial Crimes Enforcement Network (FinCEN) filing a suit that would classify BUSD as a currency. He humorously referred to this scenario as Binance achieving the “Holy Trifecta.”
Notably, in the dismissal motion, Binance argued that the U.S. regulator has offered no guidance regarding crypto regulation and that it only sought to exert “expansive authority.”
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