Circle supports Binance in Fight Against SEC
Circle backs Binance against SEC claims, saying dollar-linked coins like BUSD aren't investments. Major exchanges watch closely.
Circle, a major stablecoin company, stepped in to support crypto exchange Binance in its legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC accuses Binance of illegal trades in digital currencies, including the stablecoin BUSD. This case is closely watched because top exchanges like Binance and Coinbase argue that the U.S.' strict financial rules shouldn't apply to crypto.
Circle's main point: stablecoins linked to the dollar, like BUSD and Circle's USDC, shouldn't be seen as securities. They believe that people don't expect profits from simply buying these coins. "Payment stablecoins are not investment contracts," says Circle, implying the SEC shouldn't oversee them. This viewpoint is backed by many legal cases.
The SEC, however, says BUSD was marketed as a way to earn profits, making it an investment. Binance and its founder, Changpeng “CZ” Zhao, are trying to dismiss the SEC's claims. They believe the SEC is overstepping without proper approval.
Heath Tarbert, Circle's top legal officer and a former regulator, presented these arguments in a special court filing, supporting Binance's side.
