A federal judge has dismissed the motion filed by Binance against the SEC for its “misleading” statements on securities in the US.
Binance and its denied motion against SEC’s security statements in the US
Judge Amy Berman Jackson has denied the motion filed by Binance in its lawsuit against US Securities and Exchange Commission (SEC) regarding its statements on securities.
In essence, on 21 June, Binance’s legal team allegedly accused the SEC of misleading the US public with statements it made regarding securities. Such statements have the potential to “taint the jury” and introduce “unwarranted confusion in the marketplace.”
However, that motion was denied by the federal judge in a ruling issued yesterday in the US District Court for the District of Columbia. This means that the financial regulator will be able to continue making its public statements related to the case.
The case involves Binance.US, Binance Holdings Limited and CEO Changpeng “CZ” Zhao against the US SEC.
Binance: judge does not intervene on SEC’s statements on security in the US
Judge Jackson reportedly found that there was no need to intervene against the SEC’s statements on securities. Specifically, the judge said:
“While all of the lawyers in this case should adhere to their ethical obligations at all times, it is not apparent that Court intervention to reiterate that point is needed at this time, or that it is necessary or appropriate for the Court to get involved in wordsmithing the parties’ press releases. Nor is it clear that the agency’s public relations efforts to date will materially affect proceedings in this case.”
Binance had taken action after the SEC issued its press release on 17 June stating that CZ and Binance could “commingle customer assets or divert customer assets as they please.”
The Binance vs SEC lawsuit has been underway since 5 June, with as many as 13 allegations by the financial regulator against the web’s most popular crypto-exchange. These include charges of offering unregistered securities to US customers.
Changpeng Zhao’s (CZ) sigh of relief and look toward Japan
Recently, the CEO of Binance, Changpeng CZ Zhao, expressed relief over the issue related to Binance.US and the unfreezing of its assets.
And indeed, this month, there has been a real period of tension and uncertainty for the company. Basically, in his June 18 ruling, Judge Jackson had approved the proposed stipulation and consent order reached between Binance.US and the SEC.
This is an approval that indicates that the parties involved have reached a mutually acceptable solution to the SEC’s concerns.
This means that the assets of Binance.US that had been frozen will finally be able to return to his company.
Not only that, yesterday, CZ also shared in a tweet his appreciation toward what is happening in Japan:
Indeed, in Japan, there appears to be a new tax exemption for token issuers, who will no longer have to pay the 30% crypto tax on paper earnings.
Source: https://en.cryptonomist.ch/2023/06/27/binance-motion-over-sec-statements-securities-usa/