The SEC is still struggling to define what exactly qualifies as a security in the ongoing litigation with Binance. This has led to regulatory uncertainty and confusion in the crypto industry. In a recent filing, Binance’s legal team argued that the SEC’s amended complaint does not provide any clear standard for determining when cryptoasset transactions qualify as investment contracts under US securities law.
The company’s lawyers believe that this could ultimately plunge the entire industry into uncertainty. The SEC’s claim that all cryptoasset transactions qualify as securities because buyers hope for increased value is contradictory to previous judicial interpretations. The case between the SEC and Binance is expected to continue until July 2025.
