Binance CEO Changpeng "CZ" Zhao and his cryptocurrency exchange have filed a joint motion to dismiss the SEC's case against them.

Binance Holdings and Zhao both claimed in a September 21 filing in the United States District Court for the District of Columbia that the SEC had overstepped its authority in the litigation against them.

Lawyers for Binance and Zhao accused the SEC in the 60-page petition of failing to create clear guidelines for the industry prior to its case against the crypto exchange and, as a result, retrospectively imposing its regulatory authority throughout the crypto sector.

“The SEC pursues these novel theories retroactively, seeking to impose liability for sales of crypto assets that occurred as far back as July 2017, before the SEC provided any public guidance concerning cryptocurrency.“

“It is clear that the SEC’s lawsuit has no foundation in the currently enacted securities laws.“

Binance's lawyers also claimed that the regulator fundamentally misunderstands securities rules and their application to crypto assets.

"In attempting to claim regulatory power over the crypto industry, the SEC distorts the text of the securities laws," the complaint stated.

In addition to Binance and Zhao's appeal, the crypto exchange's American subsidiary, Binance.US — officially known as BAM Trading Services — reportedly requested the dismissal of charges in a separate 56-page filing on the same day.

On June 5, the SEC filed a lawsuit against Binance and its affiliates, alleging that Binance sells unregistered securities and operates illegally in the United States.

The SEC's action against Binance comes three months after the Commodity Futures Trading Commission (CFTC) sued Binance for failing to register with it and for violating many of its guidelines.

Trading activity on Binance.US has been hit hard by the ongoing regulatory action against the exchange, with daily trading volumes slumping more than 98% from September 2022.

Sources:

https://cointelegraph.com/news/binance-ceo-chanpgeng-zhao-asks-court-dismiss-sec-lawsuit

https://www.courtlistener.com/docket/67474542/118/sec-v-binance-holdings-limited/?redirectormodal=True

https://www.bloomberg.com/news/articles/2023-09-22/crypto-exchange-binance-ceo-zhao-ask-court-to-dismiss-sec-suit