Magistrate Judge Grants More Time in Binance vs. SEC Legal Battle

The post Magistrate Judge Grants More Time in Binance vs. SEC Legal Battle appeared first on Coinpedia Fintech News

In a recent development, Magistrate Judge Zia M. Faruqui has extended the ongoing legal battle involving Binance Holdings, Binance.US, CEO Changpeng “CZ” Zhao, and the U.S. Securities and Exchange Commission (SEC). The parties have been struggling to resolve this, prompting the need for additional time.

Joint Status Reports submitted by the defendants and the SEC indicate that attempts to settle their differences regarding document discovery and depositions have fallen short. Amidst this standoff, Paradigm Operations has stepped into the fray, filing an amicus brief in support of Binance’s motion to dismiss the SEC’s complaint. Their argument centers on whether the SEC has jurisdiction over cryptocurrencies.

In the most recent court filings in late October, Magistrate Judge Faruqui granted Binance, Binance.US, CEO CZ Zhao, and the SEC an extension. The judge has requested that they adhere to the requirements outlined in the court’s prior consent order concerning document discovery and depositions.

However, during a presentation of a joint status report on Wednesday, Magistrate Judge Faruqui expressed dissatisfaction with both parties. They have failed to decide on the matter of discovery requests.

The SEC alleges that Binance has provided only 382 documents, withholding information on how they intend to fulfill the agency’s request for the remaining records as per the consent order. In response, Binance.US argues that the SEC has imposed unreasonable demands since the hearing on September 18.

In a move to support Binance’s efforts to dismiss the SEC’s complaint, Paradigm has once again come to their aid. Paradigm previously raised concerns regarding the SEC’s Howey Test and the interpretation of “investment contracts” and “schemes.” They argue that standard asset sales should fall under the “investment contract” definition per the Securities Laws.

Paradigm emphasizes the need for Congress to establish a regulatory framework for cryptocurrencies to prevent the SEC from gaining undue control over crypto assets. Additionally, they request the court’s acceptance of the motion to dismiss the case.

This legal battle continues to draw attention, and the outcome may have significant implications for regulating cryptocurrencies in the United States.