Ahead of the Cryptocurrency Headwinds, SEC bolsters its arsenal against Binance and Coinbase

The Securities and Exchange Commission (SEC) is coming after crypto exchanges Binance and Coinbase with renewed vigor. As part of its efforts to secure victory in the ongoing legal battles against these exchanges, the Commission has brought the court’s attention to a recent landmark case to bolster its arguments. 


Title: “SEC’s Legal Offensive Against Binance and Coinbase Intensifies: Insights from Recent Court Filings”


  1. SEC’s Aggressive Pursuit: The Securities and Exchange Commission (SEC) is escalating legal actions against major crypto exchanges, Binance and Coinbase, with a renewed focus on recent legal precedents.
  2. Terra Case as a Legal Reference: The SEC has cited Judge Jed Rakoff’s recent ruling in the Terraform case to strengthen its arguments in both cases against Binance and Coinbase. The Terra case involved the classification of LUNA and UST tokens as securities.
  3. Howey Test Continues to Apply: In its case against Binance, the SEC asserts that Binance cannot dismiss the application of the Howey test, as Judge Rakoff ruled in the Terra case that the test remains a binding statement of law.
  4. Programmatic Sales as Investment Contracts: The SEC emphasizes Judge Rakoff’s findings that programmatic sales of tokens on exchanges like Binance, regardless of the manner of sale, can be considered investment contracts and, therefore, subject to securities regulations.
  5. Coinbase’s Jurisdiction Challenge: In the case against Coinbase, the SEC has filed a notice of supplemental authority, referencing a ruling in the Terraform Labs case, to counter Coinbase’s motion to dismiss, arguing that the SEC lacked jurisdiction.
  6. Alleged Violations by Coinbase: The SEC accuses Coinbase of violating securities laws by offering and trading unregistered securities, listing specific tokens like SOL, ADA, MATIC, FIL, and SAND in the lawsuit.
  7. Parallel Legal Proceedings: Notably, the SEC initiated legal actions against both Binance and Coinbase almost simultaneously, alleging similar securities law violations.
  8. Legal Landscape and Ripple Case Influence: The courts in both cases will consider Judge Rakoff’s decision, as well as Judge Analisa Torres’ ruling in the SEC’s case against Ripple, to determine the applicability of legal principles and precedents.

Featured image from Bitcoin News, chart from Tradingview.com source.

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