Summary
Binance’s court hearing with the SEC has been delayed due to a snowstorm, and will now take place on Monday. The SEC sued Binance in June, accusing the crypto exchange of various violations, including lying to customers and operating as an unregistered exchange. Binance is expected to argue that the SEC’s assessment of what constitutes a security is incorrect. The SEC, on the other hand, believes that Binance deliberately did not comply with federal laws. Binance’s former CEO, Changpeng Zhao, pleaded guilty to anti-money laundering and sanctions violations last year. In a separate hearing, Coinbase and the SEC also faced off in court this week.
Key Points
1. Binance’s face-off with the Securities and Exchange Commission in a D.C. District Court was delayed until next week due to a massive snowstorm that closed the courtroom on Friday.
2. The SEC sued Binance Holdings Ltd. and its former CEO Changpeng Zhao in June, accusing the crypto exchange of various charges including lying to customers, operating as an unregistered exchange, and misdirecting capital to separate investment funds owned by Zhao.
3. Binance will likely argue that the SEC’s assessment of what constitutes a security is incorrect and that the major questions doctrine applies, which states that an agency must be supported by clear congressional authorization to decide on an issue of major national significance.