The CEO of Binance, Changpeng Zhao, aka CZ, has asked the United States District Court of Columbia to dismiss a buzzing lawsuit filed against them by the SEC.
On September 21, CZ, along with Binance Holding Limited, the entity managed by him, filed a joint motion to the court asking for dismissal of the SEC’s claims against them. The motion also includes BAM Trading Services Inc. and BAM Management US Holdings Inc. as defendants in the filing.
The motion claimed that the US financial regulator has overstepped its authority in this lawsuit and accused the SEC of failing to introduce clear guidelines into the crypto sector while it “retroactively” imposed regulatory authority over the industry.
The filing highlighted that SEC Chair Gensler publicly acknowledged in 2021 that “no regulatory framework” exists under the authority of the SEC for crypto exchanges. “In late 2022, however, the SEC suddenly reversed course and asserted that virtually all crypto assets are securities subject to its authority,” it said.
Moreover, by slamming the SEC’s claims, CZ and company said that the regulator misuses the meaning of ‘investment contract’ in attempts to assert regulatory power over the industry.
“The SEC also seeks to enlarge its jurisdiction globally to include transactions on foreign cryptocurrency platforms, defying Supreme Court precedent holding that the agency’s regulatory authority ends at the U.S. border,” the motion further reads.
On the same day, Binance.US – the US entity of Binance exchange – has also reportedly filed a motion to request the dismissal of charges against it by the SEC.