Binance vs. SEC: Judge to Decide Whether Crypto is Security

The judge presiding over the case filed by the United States Securities and Exchange Commission (SEC) against Binance, the world’s largest digital asset trading platform by market capitalization, Amy Berman Jackson, has officially stated that he will hear arguments on whether cryptocurrency is a security. 

Judge Jackson submitted a minute order on January 18 in the United States District Court for the District of Columbia.

Judge Weighs in on the Binance vs. SEC Case

Jackson said that he would hear how the regulator treated the digital asset sector based on the current regulatory framework.

Judge Jackson said that “the Court intends to hear arguments on [whether an investment contract must involve a contractual undertaking and] whether the SEC ‘misunderstands the meaning of “scheme” in Howey,’ from one defense attorney only.”

Arguments Regarding the Status of Crypto

For a long time, the SEC has considered all digital currencies other than Bitcoin as securities and filed lawsuits against crypto exchanges for not complying with US laws.

“Similarly, although both memoranda address the major questions doctrine and both raise background questions about whether litigation is the appropriate way for the SEC to proceed to oversee the crypto industry at all, one attorney should be assigned to argue that issue for the defense.”

US Crackdown on Binance

The US SEC and the Department of Justice (DoJ) filed lawsuits against Binance last year, along with the exchange’s former CEO, Changpeng Zhao. Interestingly, the exchange settled with the DoJ, and Zhao is awaiting trial. 

On the other hand, the DoJ has also intensified its scrutiny of the leading crypto exchange, demanding strict compliance with financial regulations. 

Dismissal of SEC Lawsuit

As reported earlier by TheCoinRise, Binance requested the court that the lawsuit filed by the SEC be dismissed with prejudice. On December 8, the SEC boldly declared that any investment with or without an investment contract is under the jurisdiction of securities laws.