Home Altcoins News Binance Fires Back at SEC Using Ripple Precedent, Slams Wahi Case as Dubious Grounds

Binance Fires Back at SEC Using Ripple Precedent, Slams Wahi Case as Dubious Grounds

Binance Fires Back at SEC

Binance, the behemoth of the cryptocurrency exchange world, is launching a vigorous counterattack against the U.S. Securities and Exchange Commission (SEC). Armed with recent legal precedents and a staunch defense, Binance is challenging the SEC’s maneuvers, asserting that a default judgment in the Wahi case holds no sway in their ongoing legal battle.

The SEC’s attempt to wield the Wahi judgment as a weapon in their case against Binance faces staunch resistance. Binance’s legal team contends that the Wahi judgment lacks substance and is irrelevant to the issues at hand. Instead, they point to the landmark decision in SEC v. Ripple Labs, where the court rebuffed the SEC’s assertion that blind sales of crypto tokens constitute “investment contracts.” Binance asserts that the Ripple ruling establishes a precedent that directly challenges the SEC’s broad classification of digital assets as securities.

Adding weight to Binance’s argument is the omission of Judge Torres’ decision in SEC v. Ripple Labs from the Wahi case proceedings. By failing to acknowledge this pivotal ruling, the Wahi judgment appears disconnected from the evolving legal landscape surrounding cryptocurrency regulation.

Moreover, the Wahi case overlooks the significant ruling in SEC v. Life Partners by the D.C. Circuit. Binance contends that this oversight further undermines the relevance of the Wahi judgment in their case, casting doubt on its validity and applicability.

Criticism of the SEC’s classification of digital assets as securities has been mounting, with voices like CFTC Commissioner Caroline Pham condemning the regulatory approach in 2022. Binance highlights that other defendants in the Wahi case opted to settle with the SEC rather than contest its interpretation of securities laws. This, they argue, underscores the shaky foundation upon which the Wahi judgment rests.

Paul Grewal, Chief Legal Officer of Coinbase, has also weighed in on the matter, dismissing the Wahi judgment as a valid precedent. His assertion further undermines the SEC’s attempt to leverage the Wahi case against Binance, adding another layer of complexity to the legal battle.

Meanwhile, in a separate legal twist, the Second Circuit Court of Appeals has breathed new life into a class action lawsuit against Binance and its founder, Changpeng Zhao. The lawsuit alleges that crypto investors purchased securities from Binance, including various tokens, during a period when the exchange utilized Amazon servers.

While this ruling refrains from definitively determining the status of crypto tokens as securities, it raises pertinent questions about the jurisdiction and territorial reach of U.S. securities laws in the realm of cryptocurrency. The timing of this revival, amid ongoing debates over the applicability of default judgments like Wahi’s, adds further uncertainty to the regulatory landscape.

As Binance intensifies its defense against the SEC’s accusations and the class action lawsuit resurfaces, the cryptocurrency industry finds itself engulfed in a legal maelstrom. The outcomes of these legal battles hold significant implications for the regulation and classification of digital assets not just in the United States but globally. In this turbulent sea of legal wrangling, the future of cryptocurrency regulation hangs in the balance, awaiting the decisive strokes of the judicial gavel.

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Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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