Summary
The Securities and Exchange Commission (SEC) has asked the court overseeing its case against Binance to consider the recent Terraform ruling. The SEC argues that the ruling, which found that certain tokens are securities, is relevant to the Binance case because the SEC alleges that Binance’s stablecoin, BUSD, is a security. The SEC also points out that a previous motion to dismiss filed by BAM Management and BAM Trading cited the Terraform ruling. The judge in the Terraform case ruled that the tokens in question are securities, which supports the SEC’s argument against the offer and sale of BUSD. The SEC claims that the court’s analysis of Terraform’s tokens is relevant to Binance’s stablecoin and other programs. Terraform has strongly disagreed with the decision that its tokens are securities. Binance and Binance US have not yet commented on the matter.
Key Points
1. The SEC wants the court overseeing the case against Binance to consider the Terraform ruling, which found that UST, LUNA, wLUNA, and MIR are securities under the Howey test.
2. The SEC argues that the Terraform ruling is relevant to the Binance case because the SEC alleges that the stablecoin BUSD is a security.
3. The judge in the Terraform case ruled that Howey is a statement of law and found that the offers and sales of UST constituted an investment contract, supporting the SEC’s argument against the offer and sale of BUSD.