all41author In the latest Binance hearing following the previous postponement due to snowstorms, the lawyers representing the cryptocurrency exchange referenced the situation that ensued between American digital asset service provider Coinbase and the United States securities watchdog SEC to make their argument.
Coinbase had approached the SEC, requesting clarity on crypto regulation. As shared on X by market analyst Dan Gambardello, Binance’s lawyer noted that the regulator failed to cooperate with Coinbase and refused to provide the requested guidance.
The SEC took it further by indicting the crypto firm in June 2023 on grounds it was operating as an unregistered broker, exchange, and clearing agency, raising concerns about potential violations of financial regulations.
In the present-day Binance hearing, the exchange’s lawyer argued that the SEC “sued Coinbase on the same flawed theory they’re bringing here while simultaneously telling the public, come in and register come in and register, we’ll work with you.”
Today in SEC vs. Binance hearing, the Binace lawyer brings up Coinbase telling the judge:
“Look at the experience of Coinbase…The SEC refused to cooperate, refused to give them any guidance, in fact, just went ahead and sued Coinbase on the same flawed theory they’re bringing…
— Dan Gambardello (@cryptorecruitr) January 22, 2024
Overall, it all comes down to the fact that the SEC has failed to provide details and clarity for certain crypto activities.
This led Judge Katherine Polk Failla to demand a description of the specific features of a token that make it an investment contract in the Coinbase-SEC lawsuit. She believes that the lack of clarity has clouded the regulator’s sense of judgment, hence the series of legal debacles with crypto-based businesses.
Meanwhile, the Binance hearing had earlier been postponed due to snow storms which forced the closure of the courtroom on January 19. Seeing that the weather conditions got better recently, the hearing was held on January 22. The crypto exchange is still pursuing a dismissal of the lawsuit that was levied against it by the regulator.
Consequently, Binance considered moving the case to a Washington court where it could seek full dismissal. Just like Coinbase, Binance has been accused of some offenses including facilitating the trade of numerous crypto tokens that the regulatory body deemed securities, flouting Know-Your-Customers (KYC) rules, and misleading users.
A number of these crypto exchanges caught in the web of SEC have voiced their displeasure concerning the tactics being adopted by the regulator to override crypto ventures. These exchanges believe that regulating crypto activities is not in the jurisdiction of the SEC.
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