Binance And Changpeng “CZ” Zhao File To Dismiss US SEC Lawsuit: Court

Highlights
- Binance and founder Changpeng Zhao asked the court to dismiss the SEC lawsuit
- Binance.US filed in support for motion to dismiss.
- The defendants claim that the agency failed to prove its claims.
- BNB price expected to rally massively if the lawsuit is dismissed.
Binance and founder Changpeng “CZ” Zhao have asked the court to dismiss the lawsuit by the US Securities and Exchange Commission (SEC). Binance claims the SEC has failed to show how its complaint satisfies the Howey test, why its complaint against third-party tokens to move ahead, and request for disgorgement should proceed to discovery.
Meanwhile, the crypto industry including Ripple CLO Stuart Alderoty fired back at the SEC. He said the agency again used failed arguments to oppose dismissal, including crypto holds no inherent value.
Binance Asks Court to Dismiss SEC Lawsuit
In the latest court filing in the District Court of Columbia, Binance and founder Changpeng “CZ” Zhao have urged the court to dismiss the lawsuit by the US SEC. Moreover, BinanceUS also filed in support of the motion to dismiss the SEC complaint.
The filings were ‘reply’ to the U.S. Securities and Exchange Commission’s opposition to drop the case. The leading crypto exchange and CZ argue that the agency failed to show that each “particular transaction” at issue was an investment contract under the Howey test. They also assert that the SEC failed to provide a reasonable way for the court to distinguish tokens sold as investment contracts from tokens sold as commodities such as Bitcoin (BTC) and Ether (ETH).
Exchange and Founder Changpeng Zhao’s Arguments
Binance said the SEC fails to show how its complaint satisfies the Howey test. It includes how the transactions at issue violate the Exchange Act and token sales involving developers were investment contracts.
Also, the agency did not explain why the case should proceed without the third-party tokens’ developers. The crypto exchange argued it was not necessary for the agency to target ten third-party tokens from many tokens.
Moreover, the filing claimed that the SEC has failed to reveal that a single investor suffered pecuniary harm, as required for the agency to seek disgorgement.
Thus, the defendants request the court to dismiss the SEC’s claims against Binance and Changpeng Zhao. Also, the SEC has failed to rectify flaws, including the court’s order on the agency’s pleading deficiencies.
BinanceUS Supports the Dismissal of SEC Lawsuit
The exchange argues that the government agency can not establish any secondary sales on Binance.US were investment contracts. Investors never had reasonable expectations of profits from the efforts of others.
Moreover, the token-by-token analysis shows the SEC’s allegations as insufficient. Also, the regulator failed to provide a framework, differentiating tokens in the marketplace that are securities and tokens that aren’t.
There were no registration claims against BinanceUS outside secondary sales, as per the filing. The SEC’s Exchange Act claims cannot move forward on the basis of staking alone. Binance arm concluded that it didn’t list securities and some counts of the first amended SEC lawsuit must be dismissed.
Meanwhile, BNB price has jumped 2% in the last 24 hours, with the price currently trading at $685.20. The token is expected to hit $800 after a recent bullish comment by CZ.
- Bloomberg Analyst Says XRP ETF Approval Odds Now 100% as Expert Eyes $33 Rally
- Hester Peirce Says US SEC Willing to Foster DePIN and RWA Tokenization Projects
- SEC Chair Paul Atkins Says Crypto Is Top Priority At SEC CFTC Roundtable
- Legal Expert Breaks Down XRP’s Appeal as Ripple SWIFT Debate Heats Up
- Crypto Stakeholders Push Back as Banks Seek Yield Ban Provision in CLARITY Act
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data
- XRP Price Prediction: How XRP Could React After October 2025 SEC ETF Decisions
- Aster Price Prediction as US President Adds $110M Worth of Tokens to His Portfolio
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing