Binance Holdings, its U.S. arm Binance.US, and CEO Changpeng "CZ" Zhao have filed motions in the United States District Court seeking to dismiss a lawsuit brought against them by the U.S. Securities and Exchange Commission (SEC). In their filing submitted on September 21, Binance and Zhao assert that the SEC has overstepped its regulatory boundaries, arguing that the agency has been retroactively imposing its authority over cryptocurrency transactions dating as far back as 2017, a time when clear guidance on such matters was not provided. Binance's lawyers further contend that the SEC misunderstands and misinterprets securities laws as they pertain to crypto assets, claiming that the agency is attempting to distort the text of these laws.
The SEC's lawsuit, filed on June 5, alleges that Binance offered sales of unregistered securities and operated illegally in the U.S. This legal challenge followed another by the Commodity Futures Trading Commission (CFTC) against Binance. As a result of these regulatory actions, trading activity on Binance.US has dramatically decreased, leading to the exchange laying off 30% of its workforce and the departure of its president and CEO. Binance's defense emphasizes that the SEC's claims are inconsistent with existing securities laws, and that only the U.S. Congress has the authority to make the policy decisions the SEC is attempting to enforce.
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Bitcoin is currently maintaining a relatively stable price level at around $26,500 USD. After retracing from the upper resistance level at $27,400, BTC appears to be returning to a consolidation channel within the range of $25,500 to $26,400 USD. The critical level to monitor in the near term is the $26,400 support line, as a breach below this level could indicate further downward movement.
