In its comment on the SEC vs. Binance case, Circle claims that stablecoins are not securities.

Circle has emphasized that assets linked to the U.S. dollar do not fall under the category of securities. This is primarily because those acquiring these assets do not anticipate any profits from their acquisition. Circle, the entity behind the USD Coin stablecoin, has weighed in on the legal dispute between the United States Securities and Exchange Commission (SEC) and the cryptocurrency exchange, Binance. In an official court filing, Circle has asserted that assets pegged to the U.S. dollar, such as Binance USD (BUSD) or USDC, do not qualify as securities because individuals purchasing these assets are not anticipating any financial gains. According to Circle’s perspective, payment stablecoins do not inherently possess the characteristics of an investment contract.

On June 5th, the SEC filed a lawsuit against Binance, citing several alleged legal infractions. The regulatory body has brought forth a total of 13 charges against the cryptocurrency exchange. These allegations include the unregistered sale of BNB tokens and BUSD tokens, which the SEC classifies as unregistered SECurity sales. Furthermore, the SEC contends that Binance neglected to register as a broker-dealer clearing agency and operated in contravention of U.S. laws.

On September 22nd, Binance, along with its CEO Changpeng Zhao, petitioned the court to dismiss the SEC’s lawsuit. Binance and Zhao’s legal team argued that the SEC had exceeded its jurisdiction in pursuing the lawsuit against them. In their petition, Binance and Zhao’s legal representatives emphasized their belief that the SEC failed to establish clear industry guidelines prior to initiating legal action against the exchange, and, in doing so, attempted to retroactively exert control over the sector.

In addition to cryptocurrencies and crypto exchanges, the SEC has also classified nonfungible tokens (NFTs) as SECurities. On August 28th, the SEC filed charges against the entertainment company Impact Theory for the sale of its NFT collection, asserting that these NFTs constitute unregistered SECurities.

Furthermore, on September 13th, the SEC leveled charges against the entity responsible for the Stoner Cats NFT collection. According to the SEC, this entity facilitated the sale of unregistered securities by offering NFTs to the public.

The post In its comment on the SEC vs. Binance case, Circle claims that stablecoins are not SECurities. appeared first on BitcoinWorld.

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