Categories: MarketsMenafn

Binance Fights Back: CZ’s Beanie Baby Defense Against SEC’s Amended Complaint

Former Binance CEO Changpeng Zhao has filed a motion to dismiss the Securities and Exchange Commission’s (SEC) amended lawsuit, arguing the regulator fails to clearly define which cryptocurrency transactions qualify as securities. 

The motion, submitted on November 4, challenges the SEC’s assertions regarding several tokens, including Axie Infinity Shards (AXS) and Filecoin (FIL). Zhao contends that the SEC’s approach is arbitrary and lacks a consistent legal standard, likening its handling of crypto to that of “Beanie Babies.”

“Assets—whether oranges, Beanie Babies, or crypto assets—do not become investment contracts in perpetuity simply because they were initially offered and sold to customers as part of a package ..”

SEC’s Legal Claims Under Scrutiny

In its amended complaint, the SEC alleges that certain token transactions constitute securities, extending beyond the initial offerings to secondary market resales. Binance & Zhao’s defense maintains that these resales should not be classified as securities transactions, emphasizing that each crypto transaction must meet specific criteria under securities law. 

Filing excerpt via United States District Court

The motion asserts that the SEC’s claims “fail as a matter of law” and seeks a dismissal with prejudice, suggesting the SEC’s theories are flawed rather than the facts at hand.

The Ongoing Regulatory Battle

The SEC’s case against Binance represents a significant challenge in the evolving landscape of cryptocurrency regulation. As the legal battle unfolds, scrutiny of influencer and celebrity involvement in crypto projects is increasing, raising concerns about market integrity and investor protections. Binance’s fight against the SEC is emblematic of broader tensions within the crypto industry, where clarity and regulation remain contentious issues, further complicated by ongoing legal battles faced by other crypto exchanges and projects.

This ongoing conflict will likely influence how regulators approach cryptocurrency, affecting market sentiment and the future of digital assets in the United States.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

MARA Holdings Raises $1 Billion via Senior Note Offering to Buy Bitcoin

Marathon Holdings, a Nasdaq-listed cryptocurrency mining and blockchain technology firm, has raised $1 billion through…

1 hour ago

OAI is Influencing Operations in Many Industries with Its Mini PC Solutions

OAI is changing the nature of operations with its powerful mini PC solutions, improving productivity…

4 hours ago

Cardano’s ADA Price Rises Above $0.80 Despite Broader Market Slump: How High Can ADA Go?

Cardano’s native token (ADA) has performed well despite the downturn in the broader crypto market.…

13 hours ago

Cornerstone Wealth Management Expands Services, Offering Tax, Medicare, & Estate Planning for Retirement Solutions

Henderson, NV – Cornerstone Wealth Management is thrilled to announce the expansion of its suite…

13 hours ago

Cornerstone Wealth Management Debuts “The Cornerstone Retirement Blueprint” TV Show to Help Retirees Tackle Financial Challenges

Henderson, NV – Cornerstone Wealth Management is excited to announce the premiere of its new…

13 hours ago

MicroStrategy’s Bitcoin Premium Surges as MSTR’s Market Cap Tops $100 Billion

The total market capitalization of the Nasdaq-listed business intelligence firm MicroStrategy, the largest corporate holder…

1 day ago