During the hearing, Binance’s legal team raised concerns about the SEC’s handling of cryptocurrencies in light of established legislative and regulatory frameworks. In a Reuters report(click for the related article), a Binance attorney criticized the SEC for inconsistent treatment, alleging that the agency was hindering businesses from complying by keeping regulatory doors closed.
Reports from the courtroom suggest that the SEC defended its position, asserting that the Howey test for securities applied unequivocally to all assets, including cryptocurrencies. Additionally, authorities claimed they were not obligated to inform companies about potential violations of securities laws.
Judge Amy Berman Jackson, presiding over the case, expressed her intention to consider the arguments presented by both Binance and the SEC. Addressing the SEC’s legal team, Judge Jackson remarked, “It seems like you are trying to say that all digital assets, at the end of the day, have the earmark of securities.”
The outcome of the SEC vs. Binance case could significantly impact cryptocurrency companies operating in the US. Concerns have been raised by various companies, including Binance, Coinbase, Ripple, and Kraken, about the lack of a clear regulatory framework for lawful operations.
In November 2023, Binance, Binance US, and former CEO Changpeng Zhao reached a $4.3 billion(click fo the related article) settlement with the US Justice Department, Treasury Department, and Commodity Futures Trading Commission. As part of the settlement, Zhao entered a guilty plea to one felony charge, with his sentencing scheduled for February 23.
