SEC vs Binance Court Hearing Postponed Due to Snowstorm
- The legal confrontation between the SEC and Binance, originally scheduled for this week, has been postponed to next week due to a snowstorm.
- Binance is seeking to dismiss the SEC’s lawsuit, which accuses it of various offenses, including operating an unregistered exchange.
- The new hearing is set for Monday at 10 AM, after two to three inches of snow hit the D.C. area.
Washington D.C. Under the Snow: Hearing Postponed
The highly anticipated face-off between Binance, one of the largest cryptocurrency exchanges, and the U.S. Securities and Exchange Commission (SEC) has been delayed due to extreme weather conditions.
Originally scheduled to take place this week, the meeting has been rescheduled for next week, following the court’s closure due to a severe snowstorm in Washington D.C.
As a reminder, the SEC has accused Binance and its former CEO, Changpeng Zhao, of various offenses, including deceiving customers, diverting funds to separate investment funds held by Zhao, and operating as an unregistered exchange.
The SEC has also classified 12 tokens traded on Binance, including BNB and BUSD, as securities. This means that, according to the agency, these digital assets must comply with the same regulations and disclosure requirements as traditional securities.
Binance’s Strategy in Response to the SEC
Binance plans to challenge the SEC’s interpretation of the definition of a security. Their argument is partly based on the absence of a formal contract in this context. Therefore, Binance intends to invoke the “doctrine of major questions“, which states that if an agency seeks to decide a major national issue, it must be supported by Congress.
The outcome of this confrontation could have significant implications for the cryptocurrency industry, especially regarding the regulation and classification of digital assets. The decision could also influence the way cryptocurrency exchanges operate and interact with regulators in the United States.