Binance Challenges SEC Lawsuit, Seeks Dismissal Based on Legal Requirements

Binance and its U.S. affiliate, Binance.US, have argued in a new filing that the U.S. Securities and Exchange Commission (SEC) failed to meet the requirements of the "Howey Test" in its lawsuit against the companies and their founder, Changpeng Zhao. The filing asserts that the SEC did not demonstrate that the exchanges' U.S. customers had investment contracts or that other elements of the Supreme Court case were met. Binance recently settled charges with various U.S. regulatory bodies and filed to dismiss the SEC lawsuit in September, claiming regulatory overreach. The SEC argued that the settlements showed Binance's awareness of operating in the U.S., but Binance countered that securities laws did not apply to the settlements.