US Court Grants SEC’s Request To Submit Combined Response In Binance Lawsuit

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In the latest development, the US court has granted the SEC’s request to submit an omnibus response to the Motions to Dismiss that shall not exceed 70 pages. Notably, the motion arrived in response to requests by Binance, Changpeng Zhao and Binance US to dismiss the amended complaint. However, the court’s decision to dismiss the complaint is still pending.

Judge Approves SEC’s Request

Previously, the US SEC had requested permission to exceed the typical page limit under local rules, noting the complexity of the motions involving multiple legal arguments. In response, Judge Amy Jackson approved the request, allowing the SEC to submit a combined response that will be at most 70 pages.

The extension now grants the SEC extra space to address the legal points raised by both the defendants in the ongoing Binance lawsuit. 

Previously, Lawyers representing Binance and former CEO Changpeng “CZ” Zhao attempted to dismiss the SEC lawsuit against them as they filed a motion to dismiss an amended complaint submitted by the SEC last month.

The filing read that the amended complaint pays “lip service” to an earlier court ruling that crypto assets are not in and of themselves securities but “refuses to accept the logical conclusion of that ruling—that secondary market resales of the assets long after they were first distributed by their developers are not ‘securities’ transactions.”

“Instead, the SEC’s Amended Complaint continues to insist that virtually all transactions involving crypto assets—including blind secondary market resales of tokens—are securities transactions because some buyers might hope the assets will increase in value,” it said.

SEC’s Lack Of Clarity On Regulation

It also slammed the SEC for a lack of clarity on regulation on virtual assets. “The SEC still refuses to articulate any standard for courts, litigants, or market participants to know which crypto-asset transactions qualify as investment contracts, and which do not,” it stated.

The SEC has stated that it would consolidate all responses into a single document to promote judicial efficiency and avoid duplication across separate filings. It will now be able to provide a combined response following the court order. The SEC’s response is due by December 4.