Binance vs SEC: Court Grants Extra Time for Response

In a recent development, a US court has granted the SEC’s request to submit a combined response to the Motions to Dismiss, allowing up to 70 pages. This motion comes after Binance, its CEO Changpeng Zhao, and Binance US asked the court to dismiss the amended complaint filed against them.

However, the court has not yet decided whether to dismiss the case.

Judge Approves SEC’s Request

Previously, the US SEC had requested permission to exceed the typical page limit under local rules, noting the complexity of the motions involving multiple legal arguments. In response, Judge Amy Jackson approved the request, allowing the SEC to submit a combined response that will be at most 70 pages.

The extension now grants the SEC extra space to address the legal points raised by both the defendants in the ongoing Binance lawsuit. 

Binance and CZ Fight Back

Binance’s legal team, along with CEO Changpeng “CZ” Zhao, filed a motion to dismiss the SEC’s amended complaint last month. They argued that the complaint “pays lip service” to a previous court ruling that said crypto assets themselves are not securities. However, they claim the SEC “refuses to accept the logical conclusion” of this ruling—that secondary market resales of assets, after they’ve been initially distributed by developers, are not “securities” transactions.

“Instead, the SEC’s Amended Complaint continues to insist that virtually all transactions involving crypto assets—including blind secondary market resales of tokens—are securities transactions because some buyers might hope the assets will increase in value,” it said.

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SEC Criticized for Lack of Clear Guidelines

Binance’s lawyers also slammed the SEC for its lack of clarity on crypto-asset regulation. The filing stated that the SEC has not provided clear rules to help courts, litigants, or market participants understand which crypto transactions count as investment contracts and which do not.

The SEC has said it will consolidate all responses into a single document to save time and avoid repeating arguments. With the court’s approval, the SEC now has the go-ahead to submit this combined response, which is due by December 4.

FAQs

With both sides gearing up for a prolonged legal fight, the next few weeks will be critical. Stay tuned for all the updates!