In an intense court session on January 22, the legal conflict between Binance vs SEC reached a crucial point. Mathew Gregory, representing Binance, faced a critical response from Federal Judge Jackson regarding their efforts to fend off the SEC's lawsuit against Binance.
Crypto Regulation Feud
The SEC demands that Binance's crypto asset trading activities fall under its supervisory authority, by placing these assets as securities. The SEC accused Binance of practices such as manipulating trading volumes and facilitating the trading of unregistered securities.
On the other hand, Gregory highlighted the inconsistency of the SEC's approach to the crypto industry. He argues that the SEC is sending conflicting messages to the crypto industry, encouraging them to register but simultaneously blocking opportunities to do so.
Securities and Legal Definitions
The case also brought attention to the definition of "securities" under the Securities Act of 1933 and the Supreme Court's interpretation.
The SEC argued that this definition is flexible and varies based on the case and context, while Binance challenged the application of securities rules to crypto.
Judge's Response to SEC vs Binance Case
Judge Amy Berman Jackson voiced skepticism regarding Binance's arguments, particularly regarding the implementation of the new crypto rules. He underlined that securities law aims for flexibility and investor protection.
This SEC case against Binance is different from previous Coinbase cases because it involves allegations of fraud and market manipulation. The hearing is important because it will determine how digital assets are traded and regulated in the US, as well as how regulators deal with emerging crypto companies.
Judge Jackson asked the SEC to clarify the limits of its jurisdiction over digital assets, highlighting the complex dynamics between regulation and the evolution of the crypto industry. This decision is expected to have a major impact on the regulation and recognition of digital assets by US authorities.
Also read:
What is the SEC and Its Role in Cryptocurrency Regulation
Ripple vs SEC: Ripple Fights Additional SEC Lawsuits with New Evidence
SEC Postpones Approval Decision on Fidelity Proposal on Ethereum Spot ETF
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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