July 10, 2024
Circle Accepted as Amicus Curiae in SEC vs. Binance Lawsuit: Report
Latest Cryptocurrency News

Circle Accepted as Amicus Curiae in SEC vs. Binance Lawsuit: Report

United States District Judge Amy Berman Jackson of the District Court for the District of Columbia has taken significant actions in the ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against cryptocurrency exchange Binance, ahead of a crucial hearing.

Among the key orders issued, Judge Jackson cleared an amicus brief filed by USD Coin (USDC) issuer Circle, just in time for the important hearing on October 12. Circle had filed a court motion on September 29 in the ongoing SEC vs. Binance lawsuit, asserting that assets pegged to the U.S. dollar, like USDC, should not be classified as securities.

Circle argued that buyers of these stablecoins do not anticipate making a profit from acquiring them. According to Circle, payment stablecoins lack the characteristics of an investment contract in and of themselves.

Judge Jackson accepted Circle as amicus curiae, emphasizing that they are neither supporting Binance nor its CEO Changpeng Zhao’s motions to dismiss the lawsuit. It was also clarified that amicus curiae may participate in oral arguments only with the court’s permission. An amicus curiae is an entity that is not a party to the legal dispute but is allowed to assist the court by providing information, expertise, or insights on the case. The court holds the authority to decide whether to consider an amicus brief.

The SEC had filed a lawsuit with 13 charges against Binance on June 5. These charges included unregistered securities sales of BNB and Binance USD (BUSD) tokens. The SEC further alleged that Binance operated as an illegal broker-dealer clearing service in the United States and failed to register accordingly.

On September 22, Binance and Changpeng Zhao submitted a petition to the court to dismiss the SEC lawsuit, asserting that the SEC had exceeded its regulatory authority. Their legal team argued that the SEC had not established clear guidelines for the industry before taking legal action against the exchange and had unjustly imposed its jurisdiction over the business.

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