Binance might strengthen its protection in opposition to the US Securities and Alternate Fee (SEC) by drawing on an unrelated case.
On April 26, Binance and associated events filed a authorities doc from an unrelated case in opposition to Mango Markets exploiter Abraham Eisenberg, who was convicted by a jury on April 18.
The federal government’s argument
Binance’s protection group drew consideration to a particular paragraph by which the US authorities expressed its place on whether or not a selected stablecoin, USDC, is a safety.
On behalf of the US authorities, legal professional Damian Williams said that there “is not any factual foundation for treating USDC as a safety,” including that “holders of USDC don’t anticipate earnings from the token” due to its ties to the US greenback.
The argument closed off a doable exception that might stop classifying MGNO Perpetuals, that are based mostly on the worth of USDC, as a combined swap.
The argument aided authorities prosecutors within the Eisenberg case however may benefit defendants going through securities violations in different circumstances, similar to Binance.
Limitations of the argument
The relevance of the case could have limits. The SEC has charged Binance with varied securities violations, however every case focuses on totally different choices.
Moreover, the most recent submitting is barely related to the SEC’s civil securities swimsuit in opposition to Binance Holdings Restricted, its former CEO Changpeng Zhao, and associated firms. It doesn’t pertain to a legal case by which Zhao has pleaded responsible and awaits sentencing.
The Eisenberg case might additionally assist defendants in different securities circumstances, together with Coinbase, for related causes. The SEC initiated lawsuits in opposition to Coinbase and Binance simply days aside in June 2023, and it has superior varied different fits in opposition to different exchanges, together with Kraken in November 2023.
