According to a report by CoinDesk, the US Securities and Exchange Commission (SEC) has opposed Binance’s motion to dismiss its lawsuit in a new filing.
The SEC argues that Binance’s motion relies on “distorted” and “incomprehensible” interpretations of federal law and precedent, and lacks legal basis.
As reported by Zombit earlier, the SEC sued Binance, its founder Zhao Changpeng (CZ), and Binance US in June of this year, alleging that they illegally offered unregistered securities in the form of various cryptocurrencies for trading and investment by US investors. Binance subsequently argued in its motion to dismiss the lawsuit that the SEC’s legal actions have exceeded its jurisdiction and have not “reasonably alleged” actual violations of securities laws.
In a filing submitted on Wednesday, the SEC claimed that Binance’s arguments would “overturn fundamental precedents that have supported the operation of the country’s securities laws for decades” and instead create a new “rigid framework” lacking in precedent or current legal basis.
The SEC also accuses Binance of violating securities laws by selling BNB tokens as a fundraising mechanism during its initial coin offering (ICO), selling Binance USD (BUSD) stablecoin as investment contracts, and considers staking and Earn programs as violations of securities laws.
The SEC also rebuts claims that its lawsuit violates the “Major questions doctrine,” a Supreme Court ruling that instructs federal agencies to wait for congressional authorization on significant economic or political issues. The SEC stated: