Binance challenges SEC lawsuit crypto classification in court motion
Binance and its founder, Changpeng Zhao, filed a motion to dismiss the SEC's amended complaint, arguing that the SEC has not adequately acknowledged a prior court ruling stating that crypto is not inherently a security. The defendants claim the SEC's lawsuit contradicts this ruling, which implies that secondary market resales of digital assets do not qualify as securities transactions. They assert that the amended complaint fails to differentiate between assets and investment contracts. Binance contends that token sales on exchanges are impersonal, lacking the expectation of a joint enterprise necessary for investment contracts under securities law. The motion also challenges the SEC's classification of blind sales of BNB as investment contracts and requests rejection of the SEC's disgorgement claims and efforts to bar Zhao from the securities market. The SEC's expanded lawsuit includes additional digital assets and asserts that most crypto transactions are securities transactions, amid ongoing criticism of its inconsistent definitions of digital asset securities.
