TechFlow reports, according to The Block, that Binance and its founder Changpeng Zhao are seeking to dismiss the lawsuit filed against them by the U.S. Securities and Exchange Commission (SEC). The case centers on the "investment contract" argument. In filings submitted on Tuesday, Binance stated that the SEC's complaint largely revolves around actions such as clicking on websites, purchasing tokens from other anonymous token holders, and settling transactions conducted by customers. However, in all contested transactions, there was no contract involving an investment of money with a promoter into a common enterprise.
Furthermore, Binance argues that the SEC has ignored the requirement that determining the existence of an "investment contract" must be assessed on a transaction-by-transaction basis. BAM Trading and BAM Management, the entities responsible for operating Binance.US, also noted in court filings that the SEC has failed to adequately allege that digital asset transactions on the BAM platform constitute investment contracts. Both companies stated that the question of how the term "investment contract" should apply to digital assets should be resolved by Congress rather than the courts—a separation of powers issue demonstrated by the SEC's own history of regulatory overreach.
