TechFlow news, according to Coindesk, the U.S. District Court for the Southern District will rule within a month on Terraform Labs' motion to dismiss the SEC's charges. The core issue in this dispute is whether the definition of "investment contract" applies to UST and whether it can be deemed a security.
During Thursday night's hearing, the defense argued that UST was designed for actual utility purposes and lacks investment characteristics, thus cannot be considered a security.
This argument resembles defenses made by other token issuers.
The SEC filed a lawsuit in February accusing Terraform Labs and Do Kwon of orchestrating a multibillion-dollar securities fraud involving crypto assets, violating relevant laws and regulations.
In April, Terraform Labs filed a motion to dismiss the charges, claiming that the SEC lacks jurisdiction. Judge Rakoff stated that he will issue a ruling on the motion to dismiss by July 14 or earlier.
