The Securities and Exchange Commission's (SEC) lawsuit against Binance, the cryptocurrency exchange owned by Changpeng “CZ” Zhao, has taken a new turn as Circle, an issuer of stablecoins such as USDC and BUSD, has intervened. The SEC accuses Binance of facilitating trades in cryptocurrencies like solana's SOL, cardano's ADA, and its own BUSD, which are considered unregistered securities.
Circle maintains that these assets, which are tied to other values, should be exempted from financial trading laws. They argue that users do not anticipate profits from individual purchases of stablecoins, distinguishing them from securities. This view is supported by Circle's Chief Legal Officer Heath Tarbert, who is the former chair of the Commodity Futures Trading Commission (CFTC), another regulatory body currently suing Binance.
In response to the SEC lawsuit, Zhao has sought to dismiss the case. The ongoing legal battle is part of a broader scrutiny of cryptocurrency exchanges and digital assets by regulatory bodies worldwide.
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