- The US Securities and Exchange Commission (SEC) has taken legal action to obtain Terraform Labs’ decision from Binance.
- In their plea, the SEC requests the judge to assess the possibility of a simplified judicial review.
The SEC has submitted a motion to the court, seeking summary judgment in their case against Binance, a cryptocurrency exchange.
According to the SEC, the ruling against Terraform Labs and its co-founder, Do Kwon, shares similarities with their enforcement proceedings against Binance, its former CEO Changpeng Zhao, and Binance.US.
It should be noted that U.S. District Judge Jed Rakoff previously determined that assets like UST, LUNA, mLUNA, and MIR are considered securities because they function as investment contracts.
“The court’s analysis of the so-called ‘stable coin’ UST is particularly relevant to considering arguments regarding Binance’s ‘stable coin’ BUSD, as well as services like BNB Vault and Simple Earn,” the motion states.
Furthermore, the SEC argues that Terraform Labs’ decision provides “additional grounds” for Judge Amy Jackson to consider rejecting Binance’s motion to dismiss the case.
It is worth mentioning that on December 19, 2023, the US District Court approved the settlement agreement between Binance and the US Commodity Futures Trading Commission.