Binance Requests Court to Dismiss SEC Lawsuit – BitRss

Binance and its founder, Changpeng “CZ” Zhao, have filed a motion in the District Court of Columbia to dismiss the lawsuit brought by the U.S. Securities and Exchange Commission (SEC). Binance argues that the SEC’s complaint does not meet legal standards. The company critiques the SEC’s approach of categorizing tokens traded as commodities, such as Bitcoin and Ether, as investment contracts.

Discussion of the Howey Test and Binance’s Defense

Binance claims that the SEC failed to adequately apply the Howey test in its complaint. The Howey test is used to determine whether an asset constitutes an investment contract. The company states that the SEC did not provide sufficient evidence to support claims that each token represents a separate investment contract and noted a lack of a framework to distinguish Bitcoin (BTC) $97,265 and Ether (ETH) from securities.