In court documents submitted on November 7, the U.S. SEC rejected Binance’s previous request to dismiss the lawsuit because the arguments used by Binance in the motion relied on incorrect legal analysis and had no legal basis.
The SEC stressed that Binance "never complied" with federal securities laws, making a "deliberate choice" to compare cryptocurrencies to "supermarket items such as oranges, which is ridiculous," and called the sale of cryptocurrencies on the platform a luxury. Investment contracts under the Iraqi test.
In addition, the SEC reiterated its claim against BNB, arguing that its ICO violated securities laws and that BUSD, as well as the pledge, Vault, and Earn programs that provide returns, are investment contracts.
The SEC said that approving Binance’s request to dismiss the lawsuit would “remove decades of fundamental precedent in the operation of state securities laws” and replace it with a “strict framework” that subverts the “broad, flexible regime” of current law. (Cointelegraph)