Binance bases its SEC defense approach on the Mango Markets case.
Binance defends itself against the U.S. government by employing a legal tactic from a previous case. Commission on Securities and Exchanges (SEC).
In an attempt to support its argument, the cryptocurrency exchange on April 26 cited a government document about the conviction of Avraham Eisenberg, the exploiter of Mango Market.
Attorney Damian Williams contended during the Eisenberg trial that the government claimed the stablecoin USDC is not a security. He pointed out that since USDC has a consistent value based on the US dollar, its holders do not anticipate profits.
This argument may assist Binance refute some SEC allegations while also aiding in the Eisenberg case’s classification of linked financial products.
The SEC’s accusations against Binance involve different offerings, which are very different from the USDC issue, therefore this argument may not be very helpful.
Furthermore, Changpeng Zhao, the former CEO of Binance, is not being charged with a crime and is currently awaiting punishment; this argument only concerns Binance’s civil case.
Given that Coinbase and other cryptocurrency services are facing comparable SEC allegations, this legal viewpoint may also prove advantageous to them.
In June 2023, the SEC filed lawsuits against Coinbase and Binance. Later that year, the regulatory body also took aim at other exchanges, including Kraken.
Legal precedents from unrelated instances are used to illustrate the complex legal environment and the difficulties bitcoin exchanges have in dealing with authorities. The results could have a big impact on how securities are defined in the bitcoin space.
April 2024, Cryptoniteuae
