Binance, its U.S. affiliate (Binance.US), and CEO Changpeng Zhao (CZ) have filed motions to dismiss a Securities and Exchange Commission (SEC) lawsuit against them. The SEC had accused them of illegally listing unregistered securities in the form of cryptocurrencies for trading and investment by U.S. investors. The defence argues that the SEC's claims lack plausibility and that the regulator is attempting to assert authority over digital assets without explicit legislation from Congress.
The defence contends that the SEC is broadly defining the term "investment contract" and overreaching by alleging securities law violations related to crypto assets. They also invoke the "major questions doctrine," which suggests that the SEC should wait for Congress to provide clear regulatory guidance on crypto assets and trading platforms.
This legal battle highlights the ongoing debate over the regulatory treatment of digital assets, with some judges suggesting that Congress needs to clarify the rules while others argue that the SEC is expanding its jurisdiction without sufficient congressional authority. Although some crypto-related bills have been proposed in Congress, the outcome remains uncertain, particularly in the Senate.