Binance Fights Back: Cites Coinbase Case to Dismiss SEC Allegations

Binance has taken a bold step in its legal battle with the U.S. SEC by filing a Joint Notice of Supplemental Authority. This filing leverages Coinbase’s recent partial victory against the SEC to strengthen its case. The move reflects Binance’s determination to challenge regulatory accusations and seek the dismissal of charges against it.

Binance Files Joint Notice Against the U.S. SEC

A major development on January 15 saw Binance and its founder, Changpeng Zhao, jointly file in the court. Coinbase, a similar exchange, won a partial victory in a U.S. SEC case last month. Binance says the outcome of the Coinbase case reveals that the SEC’s approach to crypto platforms has many flaws.

As the SEC charges, Binance is an unregistered exchange, broker-dealer, and clearing agency. But Binance says that the SEC hasn’t made sufficient showings that these allegations actually satisfy legal standards. Second, the exchange also challenges the SEC’s interpretation of securities laws and its attempts to regulate digital currencies under outdated paradigms.

Coinbase Ruling Fuels Binance Legal Defense

Binance’s filing parallels the Coinbase lawsuit, which challenged the application of typical securities laws to digital assets. We had forced the 3rd Circuit Court of Appeals to require the SEC to substantiate its denial of Coinbase’s rulemaking petition. Such a ruling highlighted the absence of any clear regulatory guidance regarding the crypto industry.

Yet, in its filing, Binance claims that the SEC’s failure to issue what they call a deficiency order against Coinbase shows the agency’s inconsistent enforcement. Binance states that the SEC cannot take crypto platforms to court without clear guidelines. The exchange attempts to throw out claims regarding the application of the Howey test and the SEC’s request for disgorgement, as well as claims involving third-party tokens.

Armed with the momentum gained from swarming supporters, active Twitter sentiment surrounding SEC comments, and the company’s existing reputation as a leader in the sector. The Commission has come under increasing pressure to clear up the question of its applicability toward emerging technologies. This includes blockchain and digital assets. This debate has also taken on a sense of urgency by the court’s decision in the Coinbase case. Binance’s lawyers hope to use this to push back on the SEC’s cryptocurrency enforcement strategy.

– Advertisement –

BNB Price Climbs Amid Legal Developments

While Binance is stepping up its legal defense, its native token, BNB, is seeing significant price action. As for now, BNB is trading at $709.38, up 1.40% in one day alone. The token has done phenomenally over the past week, rising by over 3% and an impressive 124% over the last year.

Furthermore, BNB’s market cap and 24-hour trading volume have soared by 2.31% and 20.50%, respectively. These legal developments have traders speculating on whether they could be the catalyst for a broader crypto market rally. However, some investors expect BNB’s price to hit the $1,000 mark in the next few months.

Binance has always supported various crypto tokens to continue expanding its market presence. Adding to the optimism, traders have pinned their hopes on recently added meme coins like DOGE, SHIB, and PEPE. As part of a more generalized cryptocurrency bull market, these tokens are currently garnering attention due to their potential for being highly speculative.