Binance SEC Lawsuit: CZ Files to Dismiss Complaint, What’s Next?

Highlights,In the latest development, lawyers representing crypto exchange Binance and its founder Changpeng Zhao (CZ) have filed a motion to dismiss the SEC lawsuit. Last month, the US securities regulator amended the original complaint regarding the “crypto asset securities”, to which Binance responded on Monday.,In its recent court filing, crypto exchange Binance argued that the amended complaint against it only gives “lip service” to a previous ruling stating that crypto assets are not inherently securities.,The Binance filing also asserts that regulators fail to acknowledge the full implications of this ruling, specifically, that secondary market resales of these assets, made long after their initial distribution by developers, do not constitute securities transactions. The crypto exchange noted:,Furthermore, Binance slammed the SEC for failing to provide any regulatory clarity on digital assets. The crypto exchange argued that the agency didn’t provide any clear stand as to which crypto assets qualify to be investment contracts.,“The SEC still refuses to articulate any standard for courts, litigants, or market participants to know which crypto-asset transactions qualify as investment contracts, and which do not,” the filing stated, highlighting the ambiguity in SEC’s regulatory approach, which has cost the crypto firms upwards of $400 million under the leadership of Gary Gensler.,Despite these regulatory hurdles, the crypto exchange has continued to expand its product suite in the market. Recently, it launched a crypto solution for wealth managers.,In another development different from the SEC lawsuit, crypto exchange Binance has stepped forward to announce a $3 million relief fund for the devastating Spanish floods. Binance CEO Richard Teng made this announcement on the X platform.,,The funding will support immediate relief efforts for communities affected by the recent natural disaster. Contributions from Binance Charity will empower the Spanish Red Cross to deploy essential resources to those in need. Javier García de la Torre, General Manager for Binance in Spain said:,