Circle Joins Court Case Binance Vs. SEC
USD Coin's creator, Circle, has joined cryptocurrency exchange Binance's court case against the U.S. Securities and Exchange Commission, claiming that stablecoins are not a security.
The SEC has concerns over a number of assets that Binance has listed on its platform. In June, the regulator filed a motion to sue the company, alleging that it was trading unregistered securities. These assets include Solana, Cardano, BNB, and the BUSD stablecoin.
Circle has made it clear that financial trading laws should not apply to stablecoins, as such assets are pegged to the U.S. dollar and those who buy these are not expecting any profit from their purchase.
“Payment stablecoins, on their own, do not have the essential features of an investment contract, meaning they fall outside of SEC jurisdiction", Circle states.
Last week, Binance and its CEO Changpeng Zhao asked the court to cancel the SEC's motion, saying the regulator is exceeding its authority and seeking to take control of digital assets without congressional authorization.
In fact, this week Congress criticized the SEC's performance under its chairman, Gary Gensler, and expressed a willingness to fire the chairman.
Changpeng Zhao Gary Gensler Binance Binance.US
