Binance and SEC both criticized by judge during latest court hearing – CryptoSlate


A web3 membership designed to empower you with cutting-edge insights and knowledge. Learn more ›
Welcome! 👋 You are connected to CryptoSlate Alpha. To manage your wallet connection, click the button below.
If you don’t have enough, buy ACS on the following exchanges:
Access Protocol is a web3 monetization paywall. When users stake ACS, they can access paywalled content. Learn more ›
Disclaimer: By choosing to lock your ACS tokens with CryptoSlate, you accept and recognize that you will be bound by the terms and conditions of your third-party digital wallet provider, as well as any applicable terms and conditions of the Access Foundation. CryptoSlate shall have no responsibility or liability with regard to the provision, access, use, locking, security, integrity, value, or legal status of your ACS Tokens or your digital wallet, including any losses associated with your ACS tokens. It is solely your responsibility to assume the risks associated with locking your ACS tokens with CryptoSlate. For more information, visit our terms page.
The global crypto market cap is $1.56 trillion with a 24-hour volume of $51.8 billion. The price of Bitcoin is $40,098.49 and BTC market dominance is 50.4%. The price of Ethereum is $2,228.26 and ETH market dominance is 17.2%. The best performing cryptoasset sector is Transportation, which gained 21%.
Crypto exchange Binance attempted to argue for dismissal of charges today.
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
A Monday court hearing addressed the U.S. Securities and Exchange Commission (SEC)’s ongoing charges against Binance, Reuters reported on Jan. 22.
Binance lawyer Matthew Gregory argued during the hearing that the SEC has not set clear regulations for the cryptocurrency sector. He said:
“The SEC to this day has been talking out of both sides of its mouth when it comes to crypto tokens … They’re telling the industry (to) come in and register, while simultaneously with their other hand holding the door closed and preventing any viable path to do that.”
SEC lawyers countered that that one test, implied to be the Howey Test, is intended to be applied to financial products in a flexible manner. SEC lawyers said that there is “no bright line” for distinguishing securities and non-securities.
Binance otherwise asked Judge Amy Berman Jackson, who is presiding over the case, to dismiss the SEC’s charges against it and related parties.
The SEC originally charged Binance and its former CEO, Changpeng Zhao, in June 2023. It alleged that the company operated unregistered national securities exchanges and other services, misrepresented Binance.US’ trading controls and oversights, and carried out unregistered offers and sales of securities.
Binance’s court date follows a Jan. 17 hearing concerning similar SEC allegations against Coinbase, its competitor. Coinbase argued for dismissal as well.
Various accounts of the current hearing suggest that Judge Jackson was highly critical of Binance’s arguments throughout its testimony.
Reuters stated that Judge Jackson was dismissive of one argument in which Binance lawyers relied on major questions doctrine. That argument suggests that the SEC cannot take certain regulatory actions without approval from Congress.
Fortune reporter Leo Schwartz, meanwhile, said that Judge Jackson was resistant to Binance’s assertion that securities offerings must involve contracts. Judge Jackson quipped “You’re being a little too cute” and responded that the Howey Test includes broader language. She then criticized an analogy in which Binance argued that baseball cards, which are generally not considered securities, share some similarities with the products currently under discussion.
According to crypto lawyer Jeremy Hogan, the judge was also critical of Binance’s fair notice defense. This line of argument suggests that the SEC should have informed Binance that it had committed securities violations before filing charges.
Judge Jackson likewise questioned the SEC closely, according to another account of proceedings from Blockworks journalist Casey Wagner.
In its original set of charges, the SEC argued that Binance’s own cryptocurrencies, including BNB and its largely defunct Binance USD (BUSD) stablecoin, are securities. The SEC also argued that several other tokens that are handled but not issued by Binance are securities as well — including but not limited to Cardano (ADA), Polygon (MATIC), and Solana (SOL).
Jackson was critical of those arguments, as she stated:
“If it’s so obvious that these are securities, where has the [SEC] been? And why isn’t it relevant that the SEC took the opposite position or no condition for so many years?”
Later, an SEC lawyer responded that the Howey Test is clear that regulators do not need to contact parties to remind them of possible violations.
Judge Jackson additionally expressed concerns over the several third-party tokens that Binance handles but is not responsible for issuing. She said that she is “concerned about the discovery and many trials” that each named asset may generate, noting that issuers are not parties in the lawsuit at present.
The SEC’s claims otherwise rest partially on the assertion that many ongoing efforts involving the relevant crypto assets come with a “reasonable expectation of profit,” which satisfies one part of the Howey Test. However, it remains to be seen how the SEC will argue its case in future proceedings.
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada’s West Coast.
CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.
We explore the first 5 days of Bitcoin ETF trading, analyzing their inflows and implications on the broader market.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
BNB, or Binance Coin, is a cryptocurrency created by Binance.
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. CryptoSlate has no affiliation or relationship with any coin, business, project or event unless explicitly stated otherwise. CryptoSlate is only an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence before making any investment decisions. CryptoSlate is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
© 2024 CryptoSlate. All rights reserved. Disclaimers | Terms | Privacy

Please add [email protected] to your email whitelist.
Stay connected via


Leave a Reply

Your email address will not be published. Required fields are marked *