Autor: dot-traders

• Binance seeks to dismiss the SEC’s amended complaint that targets AXS, FIL, ATOM, SAND, MANA and BNB.
• The SEC alleges these tokens are securities, which Binance disputes as flawed.
• The legal battle could set crucial precedents for the regulation of cryptocurrencies.

Binance, the world’s largest cryptocurrency exchange, and its former CEO, Changpeng Zhao, have filed a motion to dismiss an amended complaint from the US Securities and Exchange Commission (SEC).

This legal motion, submitted on November 4, aims to counter allegations surrounding the classification of certain cryptocurrencies as securities, particularly focusing on the secondary market resale of these digital assets.

The SEC’s amended complaint

The SEC’s amended complaint, filed in September, targets additional tokens, including Axie Infinity Shards (AXS), Filecoin (FIL), Cosmos’ ATOM, The Sandbox’s SAND, and Decentraland’s MANA.

The regulatory body has alleged that these tokens fall under securities laws, a claim that Binance vehemently disputes.

However, in the amended complaint, the SEC clarified that its claims do not pertain to Binance’s initial coin offering (ICO) of its BNB token, where buyers were aware they were purchasing directly from Binance Holdings.

Instead, the SEC alleges that BNB was sold in “blind transactions,” where buyers lacked full knowledge of the asset’s source, a scenario described as common in the crypto industry due to the complexities of smart contracts and crypto wallets.

Binance argue SEC assertions are wrong

In their motion, Binance’s legal team argues that the court previously ruled against the SEC’s attempt to equate crypto assets with investment contracts, establishing that each transaction involving these assets must be assessed on an individual basis to determine compliance with securities regulations.

Binance’s lawyers assert that the SEC’s arguments are flawed, claiming the agency’s position amounts to a “failure as a matter of law.” They contend that the SEC is attempting to misinterpret the court’s ruling, which acknowledged that crypto assets themselves are not inherently securities.

Instead, Binance argues that secondary market transactions—those occurring long after the initial distribution by developers—should not be classified as securities transactions.

The SEC’s broad assertion that nearly all crypto asset transactions involve securities is described by Binance’s defence as overly simplistic and not aligned with legal precedent.

The ongoing legal battle between Binance and the SEC represents a critical moment in a year-long dispute that began with the SEC’s lawsuit in June 2023.

The outcome could have significant implications not only for Binance but for the broader cryptocurrency market as regulators continue to scrutinize digital asset transactions and their classifications under US law.

The post Binance wants SEC’s amended complaint targeting more tokens dismissed appeared first on CoinJournal.

• The Global Dollar is issued out of Singapore by Paxos and is “substantially compliant” with the MAS
• Tether’s USDT stablecoin accounts for more than 75% of the market
• Kraken’s co-founder said there is a “lack of competition” in the stablecoin market

A group of cryptocurrency and financial technology companies have introduced a joint stablecoin, the Global Dollar (USDG), to accelerate global stablecoin adoption.

Initial partners of the Global Dollar Network include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood. According to an announcement from Paxos, the Global Network is “revolutionizing” the stablecoin market with a “trusted stablecoin that provides proportionate economic benefits to all partners.”

Pegged to the US dollar, the USDG stablecoin is issued out of Singapore by Paxos and is “substantially compliant” with the Monetary Authority of Singapore’s upcoming stablecoin framework, the announcement noted.

The introduction of the USDG stablecoin comes at a time when Tether’s USDT and Circle’s USDC stablecoins make up a majority of the stablecoin market. In September, it was reported that USDT accounted for more than 75%.

More competition needed

It’s this “lack of competition” in the stablecoin market that’s stopping the “industry from reaching its full potential,” according to Arjun Sethi, Co-CEO at Kraken.

“USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases, “Sethi added.

Charles Cascarilla, CEO and co-founder of Paxos, said that stablecoins are changing “how people interact with US dollars and payments,” adding:

“However, the leading stablecoins are unregulated and retain all the reserve economics. Global Dollar Network will return virtually all rewards to participants and is open for anyone to join.”

“It is designed to incentivize global stablecoin usage and accelerate societal-wide adoption of this technology.”

Users of Anchorage Digital, Galaxy Digital, Kraken, and Paxos can get USDG right away; however, USDG will soon be available across all named distribution partners. DBS Bank, Southeast Asia’s largest bank, will serve as the primary banking partner at launch for cash management and custody of USDG reserves.

The post Crypto firms launch the Global Dollar stablecoin to boost adoption appeared first on CoinJournal.