Judge recognizes Circle as amicus curiae in SEC vs. Binance legal battle: Report

United States District Judge Amy Berman Jackson of the District Court for the District of Columbia has reportedly signed multiple orders to clear pending motions in the ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against crypto exchange Binance ahead of a crucial hearing.

The orders signed by Judge Jackson include clearing an amicus brief filed by USD Coin (USDC) issuer Circle. Circle had filed a court motion on September 29, arguing that assets tied to the U.S. dollar, such as USDC, should not be considered securities. According to Circle, buyers of stablecoins like USDC do not expect any profit from acquiring them, and they do not possess the characteristics of an investment contract on their own.

Accepting Circle as amicus curiae, Judge Jackson allowed the company to support neither Binance nor its CEO Changpeng Zhao’s motions to dismiss the lawsuit. It is important to note that the participation of amicus curiae in oral argument is contingent upon the court’s permission.

Amicus curiae, or “friend of the court,” is a person or group that is not directly involved in a legal dispute but provides the court with information, expertise, or insights on the case. The court has the authority to decide whether or not to consider an amicus brief.

The SEC filed a lawsuit against Binance on June 5, consisting of 13 charges, including the unregistered sale of securities in the form of BNB and Binance USD (BUSD) tokens. Additionally, the SEC alleged that Binance had operated illegally in the United States and failed to register as a broker-dealer clearing service.

In response to the SEC lawsuit, Binance and Changpeng Zhao petitioned the court to dismiss the charges on September 22. Their lawyers argued that the SEC had exceeded its authority, as it had not established clear regulations for the crypto industry prior to initiating legal proceedings against the exchange.

It is worth mentioning that the ongoing litigation between the SEC and Binance is of great significance in determining the regulatory landscape for cryptocurrencies in the United States. The court’s decisions regarding the classification of stablecoins as securities and the scope of the SEC’s jurisdiction over crypto exchanges could have far-reaching implications for the industry.

As the case progresses, it remains to be seen how Judge Jackson’s rulings and the arguments put forth by Circle as amicus curiae will impact the ultimate outcome of the lawsuit. The involvement of independent experts and additional perspectives from entities like Circle can provide valuable insights to the court and contribute to a fair and well-informed decision-making process.

The outcome of this lawsuit could potentially shape the future regulation of crypto exchanges and stablecoins in the United States, as regulators continue to grapple with how to oversee and monitor this rapidly evolving industry.

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