Circle’s Involvement in SEC vs. Binance Case Adds Complexity: Here’s What You Need to Know

The post Circle’s Involvement in SEC vs. Binance Case Adds Complexity: Here’s What You Need to Know appeared first on Coinpedia Fintech News

Binance is on the deep foot with the SEC in the regulatory mess. The recent exposure of Binance’s role in leaking sensitive data and CZ’s controversial tweet is making the plot thicken for Binance as it may not affect their current case. Still, in a later stage, the SEC can entangle all the loopholes. Let’s focus on Circle’s involvement in the case now – one doomed entity will help the other. How? 

Circle’s Amicus Curiae Entry, How and Why it’s Relevant? 

In the run-up to the pivotal hearing on October 12 concerning the SEC’s lawsuit against Binance, a notable development has emerged involving Circle, the issuer behind the widely-used stablecoin, USD Coin (USDC).

District Judge Amy Berman Jackson of the US District Court for the District of Columbia presided over the court and has taken several critical measures in anticipation of the upcoming hearing. One of these measures addressed pending motions related to the SEC’s legal action against Binance. Among these motions, Circle’s amicus brief stands out. This decision adds a new layer of complexity to the already closely-watched case involving the SEC vs Binance.

Circle’s amicus brief, filed on September 29, asserts a fundamental viewpoint: that assets like USDC, which are pegged to the US dollar, should not be considered securities. They argue that buyers of stablecoins do not anticipate making profits from their purchases, as these coins primarily serve as a medium of exchange. According to Circle, stablecoins lack the attributes that would classify them as “investment contracts.”

Binance’s Reaction

Judge Jackson’s acceptance of Circle as an amicus curiae signifies that the company can provide its perspective on the case without bias towards either Binance or its CEO, Changpeng Zhao, in their respective attempts to dismiss the lawsuit. However, Circle’s participation in oral arguments will require explicit permission from the court.

Judge’s Key Orders

Additionally, Judge Jackson granted several attorneys pro hac vice status, allowing them to participate in the case even though they are not licensed to practice in the specific jurisdiction. However, these attorneys must complete electronic filing training and adhere to related requirements.

What’s Coming Next? 

In related news, crypto research firm Paradigm filed an amicus brief in the same lawsuit, opposing the SEC’s stance. Paradigm accused the commission of governmental overreach and attempted to rewrite the law by leveraging “disturbing allegations” against Binance and its co-defendants.

Previously, Binance had taken action against the SEC by filing a joint motion to dismiss the lawsuit, including Bam Management Holdings Inc., affiliated with Binance.

Binance’s alleged involvement in the collapse of FTX is also stirring the wheels in the opposite direction for Binance. Only time will tell if Binance overcomes or falls into the SEC trap.