SEC asks court to consider Terraform Labs ruling in Binance case
The commission argued a summary judgment in its favor against Terra provided “further grounds” on which a judge could consider denying a motion to dismiss from Binance.
The United States Securities and Exchange Commission (SEC) has filed a motion in federal court asking a judge to consider a summary judgment ruling in its case against crypto exchange Binance.
In a Jan. 3 filing in U.S. District Court for the District of Columbia, the SEC said a Dec. 28 ruling in the commission’s case against Terraform Labs and its co-founder Do Kwon had a “number of issues” similar to its enforcement action against Binance, Binance.US, and former CEO Changpeng Zhao. In the Terra case, Judge Jed Rakoff largely sided with the SEC, ruling that specific tokens involved in the alleged fraud were securities “because they are investment contracts” and “offers and sales of UST constituted an investment contract.”
“The court’s analysis of the Terraform defendants’ so-called ‘stablecoin’ UST is particularly relevant to this Court’s consideration of Defendants’ arguments concerning Binance’s so-called ‘stablecoin’ BUSD, and Defendants’ staking-as-a service, BNB Vault, and Simple Earn programs,” said the Jan. 3 filing.
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