Circle wins court nod to weigh in on SEC Binance litigation.
US District Judge Amy Berman Jackson has approved several motions in preparation for a key court hearing in the legal battle between Binance and the US Securities and Exchange Commission (SEC).
Judge Jackson, overseeing the case in the District Court for the District of Columbia, made her decision public before the crucial hearing slated for October 12th.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Chainlink? LINK Explained Simply (ANIMATED)
One of the key points of her ruling allows Circle, which had filed its motion on September 29th, to participate in the legal proceedings as amicus curiae. For those unfamiliar, an amicus curiae is an independent entity that offers the court specialized knowledge or perspective on a case but is not a direct party to the lawsuit.
According to the filed brief, Circle argues that digital assets pegged to the US dollar, like USDC, should not be classified as securities. To justify its statement, Circle claimed that buyers don't expect to gain profit when they acquire stablecoins, highlighting that such tokens lack the "features of an investment contract."
Though Judge Jackson permitted Circle's participation, she clarified that the firm is not siding with either Binance or its CEO, Changpeng Zhao, in their pending motions to dismiss the case. The court also indicated that Circle could be part of the oral arguments only with prior court approval.
Moving on to the lawsuit's background, the SEC initially filed the case against Binance on June 5th, alleging 13 charges. The regulatory body accuses the crypto exchange of unlawful sales of unregistered securities, including Binance's native tokens, BNB and Binance USD (BUSD). The SEC further alleges that Binance operated without proper registration as a broker-dealer in the US.
In a counter-move, both Binance and CEO Changpeng Zhao formally requested to drop the lawsuit on September 22nd. Their legal team argued that the SEC had exceeded its jurisdictional authority, contending that the regulator failed to provide a clear framework for crypto operations before initiating the lawsuit.
The latest rulings by Judge Jackson have added another layer to the already complex SEC vs. Binance case. The approval of Circle as an amicus curiae introduces an additional, yet impartial, viewpoint that could influence the case's outcome.
