The U.S. Securities and Exchange Commission (SEC) has taken a significant step in its case against cryptocurrency exchange Binance, seeking to leverage a recent legal victory. In a federal court motion, the SEC urged the judge to consider the December 28 ruling against Terraform Labs and its co-founder Do Kwon in the case against Binance, Binance.US, and former CEO Changpeng Zhao. This ruling, which sided largely with the SEC, declared specific tokens in the Terraform Labs case as securities, influencing the commission's approach in the Binance enforcement action.
The SEC's argument hinges on the Terraform Labs judgment, suggesting it provides grounds for denying Binance's motion to dismiss. Binance had previously contested the SEC's authority, accusing it of imposing securities standards retroactively.
This legal strategy forms part of the SEC's broader regulatory actions in the crypto industry. 2023 saw the commission settle a $4.3 billion agreement with Binance, involving multiple U.S. financial regulators. As part of the settlement, Zhao agreed to plead guilty to a felony count, with sentencing scheduled for February.
The SEC's enforcement actions in 2023, including against Coinbase, Ripple, Kraken, and others, reflect its intensified focus on platforms allegedly offering unregistered securities.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.