In response to the SEC’s court suit, Binance and CEO Zhao have challenged the U.S. government’s authority to regulate cryptocurrency transactions on a worldwide scale.
In response to the most recent court filing made by the United States Securities and Exchange Commission (SEC), Binance Holdings Limited (BHL) and its Chief Executive Officer, Changpeng Zhao, are taking counterfactual action. BHL questioned the SEC’s submission, claiming that the SEC was including non-essential justifications.
According to BHL’s explanation, the SEC is introducing new facts into the case in an improper manner. They said that this is inappropriate given the current state of the lawsuit.
Additionally, BHL questions the manner in which the SEC analyzes previous legal issues in relation to the categorization of cryptocurrencies. According to their argument, past instances have no bearing on the here and now.
As a result of the worldwide nature of cryptographic activities, this instance presents a significant challenge. As the transaction in question did not take place in the United States, BHL contends that the Securities and Exchange Commission (SEC) is acting in an improper manner by applying U.S. securities laws to overseas transactions. They are of the opinion that the Securities and Exchange Commission is beyond the scope of its regulatory power.
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