The judge overseeing the United States Securities and Exchange Commission (SEC) case against Binance, the leading digital asset trading platform, Amy Berman Jackson, has issued a minute order on January 18 in the United States District Court for the District of Columbia, confirming the decision to hear arguments on the classification of cryptocurrency as a security.
Judge Deliberates in the Binance vs. SEC Legal Battle
Jackson expressed intent to evaluate how the regulator addresses the digital asset sector within the existing regulatory framework. The judge specified, “the Court plans to consider arguments on whether an investment contract requires a contractual commitment and if the SEC misinterprets the term ‘scheme’ in Howey,” with input from a single defense attorney.
Debates on the Classification of Cryptocurrency Status
Historically, the SEC viewed all digital currencies, excluding Bitcoin, as securities and pursued legal action against crypto exchanges for non-compliance with US laws.”
Similarly, while both memos tackle the major questions doctrine and pose overarching questions about the suitability of litigation for the SEC’s oversight of the crypto industry, a designated defense attorney should address this particular issue.”
Intensified Regulatory Measures Against Binance in the US
Last year, the US SEC and the Department of Justice (DoJ) initiated legal actions against Binance and its former CEO, Changpeng Zhao. Notably, the exchange reached a settlement with the DoJ, while Zhao awaits trial. Meanwhile, the DoJ has heightened its examination of the prominent crypto exchange, emphasizing stringent adherence to financial regulations.
SEC Lawsuit Dismissal
As previously reported by TheCoinRise, Binance formally requested the court’s dismissal of the SEC lawsuit with prejudice. On December 8, the SEC asserted boldly that securities laws govern any investment, regardless of the presence of an investment contract.
