Prepare For Crypto Headwinds: SEC Reinforces Arsenal In Battle Against Binance And Coinbase | Bitcoinist.com


The Securities and Exchange Commission (SEC) is coming after crypto exchanges Binance and Coinbase with renewed vigor. As part of its efforts to secure victory in the ongoing legal battles against these exchanges, the Commission has brought the court’s attention to a recent landmark case to bolster its arguments. 

SEC Cites Ruling In Terra Case In Its Case Against Binance

The SEC recently filed a notice of supplemental authority in its case against Binance. The Commission drew the court’s attention to Judge Jed Rakoff’s ruling in the Terraform case. The regulator believes that a number of issues resolved in its favor in that case are similar to the ones that Binance has raised. 

How To Get Free Crypto  

On December 28, Judge Rakoff gave a summary judgment in the SEC’s favor as he ruled that the LUNA and UST tokens were indeed securities. Just like the Terra case, the Commission’s case against Binance revolves around the latter’s alleged violation of Securities laws.

Alluding to the decision in the Terra case, the SEC argued that Binance could not ask the court to set aside the Howey test in determining whether or not to dismiss the case. The Commission noted that Judge Rakoff had ruled that the test remains a binding statement of law and cannot be treated as a dicta. 

Furthermore, the SEC, still citing Judge Rakoff’s ruling, noted that the court had pointed to programmatic sales of LUNA on exchanges like Binance and deemed them investment contracts also. As such, the Commission argues that the manner in which these “crypto asset securities” were sold does not matter when considering whether or not they are securities. 

Total market cap at $1.61 trillion | Source: Crypto Total Market Cap on Tradingview.com

SEC Crypto Quest Includes Coinbase

The SEC also filed a notice of supplemental authority in its case against Coinbase. In the letter addressed to Judge Failla, the Commission drew her attention to the court’s ruling in its case against Terraform Labs in support of its opposition to Coinbase’s motion

Coinbase Banner  

The SEC is relying on this case as it believes some issues resolved in its favor in that case are relevant when Judge Failla is considering the defendant’s motion. The crypto exchange had filed a motion to dismiss the case, arguing that the SEC lacked jurisdiction.

Interestingly, the Commission had sued Coinbase just a day after commencing the lawsuit against Binance. The SEC alleges that Coinbase broke the law by offering and trading unregistered securities. Some of the notable tokens that the SEC is referring to as securities in the lawsuit include SOL, ADA, MATIC, FIL, and SAND. 

Having brought the Terra case to their notice, the courts in both cases will need to consider the reason for Judge Rakoff’s decision and decide whether or not it applies to the issues in focus. They will also be guided by Judge Analisa Torres’ ruling in the SEC’s case against Ripple.  

Featured image from Bitcoin News, chart from Tradingview.com

Go to Source
Author: Scott Matherson


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.