Binance, along with its US subsidiary Binance.US and Changpeng Zhao, known as CZ, jointly filed to dismiss the lawsuit filed by the US Securities and Exchange Commission (SEC).
Binance, Binance.US and CZ Want SEC Case Dropped
The request for dismissal of the case is based on various allegations. The SEC's lawsuit, filed in June, alleged that Binance and related parties illegally listed unregistered securities in the form of various cryptocurrencies and allowed trading and investment by U.S. citizens.
This led to a legal battle over access to customer funds held by Binance.US.
Legal representatives of Binance and Binance.US argued in the motion to dismiss that the SEC's securities law allegations were unfounded and constituted regulatory overreach.
They claimed that the SEC was trying to expand its jurisdiction over the entire crypto industry without clear legislation from Congress.
One of the filings highlighted the SEC's broad interpretation of the term investment contract as a key point of contention.
Additionally, both filings cited the big questions doctrine, a precedent set by the Supreme Court that advises federal agencies to await Congressional guidance on important economic or political issues.
*This is not investment advice.