Binance and its founder, Changpeng Zhao, have filed a motion to dismiss the US Securities and Exchange Commission’s (SEC) amended complaint.
In a Nov. 4 court filing, Binance and Zhao’s legal team argued that the SEC has only superficially acknowledged a prior court ruling, which clarified that crypto is not inherently classified as a security.
According to them, the SEC’s expanded lawsuit contradicts an existing court ruling that distinguished crypto from securities. The exchange highlighted that the SEC’s position disregards the logical implications of that ruling, which suggests that secondary market resales of digital assets do not constitute securities transactions after their developers initially distributed the assets.
The defendants further argued that the amended complaint lacks a clear legal foundation to distinguish between assets involved in investment contracts and the investment contracts themselves.
The filing stated:
“Assets—whether oranges, Beanie Babies, o
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