Binance faces off against the SEC in a Washington, D.C. legal showdown. Judge Amy Berman Jackson’s rulings precede a significant hearing. Circle’s amicus curiae challenges the SEC on stablecoins, while out-of-state attorneys navigate ‘Pro Hac Vice’ status with digital filing conditions. The crypto industry anticipates a precedent-setting outcome.
In the ongoing legal showdown between cryptocurrency giant Binance and the United States Securities and Exchange Commission (SEC), Judge Amy Berman Jackson has made significant rulings to address pending motions in the case as the legal battle enters a crucial phase. The courtroom drama is set to take center stage today, October 12, during a pivotal hearing that could have far-reaching implications for the cryptocurrency industry.
Binance Vs SEC Judge’s Key Orders And Circle’s Amicus Curiae Entry
Judge Amy Berman Jackson issued multiple orders on October 11 to resolve pending motions in the lawsuit of the U.S. SEC versus Binance, the world’s largest cryptocurrency exchange. One of the most notable developments was the acceptance of Circle Internet Financial as an “amicus curiae,” or a friend of the court, offering support to neither party in the case. Circle’s amicus brief seeks to challenge the SEC’s claims that certain cryptocurrencies, particularly stablecoins, fall under the category of securities.
In its amicus curiae brief, Circle Internet Financial argued that stablecoins should not be categorized as securities, asserting that the SEC does not possess the authority to regulate payment stablecoins. Circle’s position rests on the belief that the legal and practical considerations at stake underscore the SEC’s lack of jurisdiction over payment stablecoins.
Furthermore, Judge Jackson laid down specific guidelines for future amicus curiae filings in this case. According to her orders, any future motion to file an amicus brief must be accompanied by no more than two motions to appear “pro hac vice,” which allows out-of-state lawyers to participate in the case, and must explain why the brief would be beneficial or necessary, especially if it reiterates positions previously taken in earlier amicus briefs related to the case. Additionally, amicus curiae participants may partake in oral arguments only with the express permission of the court.
Binance-Related Attorneys Granted “Pro Hac Vice” Status With Digital Filing Requirements
In a related development, Judge Jackson granted motions for leave to attorneys Jeremy Gray, Mark W. Rasmussen, Heath P. Tarbert, Eric Tung, and Daniel Kaleba to appear “pro hac vice” on behalf of their respective clients. However, as per the court’s stipulations, these lawyers, or at least one member of their firms, must undergo training in the Case Management/Electronic Case Files (CM/ECF) system, obtain a CM/ECF username and password, and commit to filing documents electronically, adhering to the court’s digital filing requirements.
Binance and the SEC Clash Continues
The ongoing legal dispute stems from the SEC’s allegations that Binance, its U.S. arm, and CEO Changpeng Zhao, known as “CZ,” violated securities regulations, mishandled customer funds, and misled investors and regulators. In response, Binance and its leadership filed a motion to dismiss the SEC lawsuit, contending that the regulatory agency has overstepped its authority by attempting to exert control over the cryptocurrency industry.
Notably, this legal battle is not exclusive to Binance, as other cryptocurrency firms like Coinbase have also sought to dismiss the lawsuit. These firms share the view that the SEC’s efforts to extend its authority into the cryptocurrency sector are unfounded and pose a significant threat to the industry’s continued growth and innovation.
As today’s pivotal hearing approaches, the cryptocurrency community and financial markets are closely watching the outcome, as the proceedings could set a precedent for the future regulation of digital assets in the United States. The decision reached in this case may have far-reaching implications for the entire cryptocurrency industry.