- SEC is using its victory against Terraform Labs to support its cases against Coinbase and Binance crypto exchanges. It hopes Terraform ruling will bolster arguments against exchanges’ motions to dismiss.
- SEC submitted Terraform ruling in Coinbase case to support its opposition to Coinbase’s motion for judgment in its favor. Says tokens on Coinbase were unregistered securities like Terraform’s.
- In Binance case, SEC wants court to consider analysis of Terraform’s UST stablecoin. Draws parallels between Terraform’s defense and Binance’s arguments about its BUSD stablecoin.
The Securities and Exchange Commission (SEC) is using its recent court victory against Terraform Labs to bolster its separate cases against crypto exchanges Coinbase and Binance. The agency hopes the favorable Terraform ruling will help its arguments against the exchanges’ motions to dismiss.
Coinbase Case
SEC Submits Terraform Ruling
The SEC submitted the Terraform ruling in a recent filing involving its case against Coinbase. The New York court had ruled that Terraform’s UST, LUNA, wLUNA, and MIR tokens were unregistered securities.
Aimed to Support SEC Opposition
The SEC says this Terraform ruling supports its opposition to Coinbase’s motion for judgment in its favor. The agency argues the tokens listed on Coinbase’s platform were also unregistered securities.
Binance Case
SEC Wants Court to Consider Terraform Analysis
In its case against Binance, the SEC asked the court to consider the analysis of Terraform’s UST stablecoin. It claims this is relevant to arguments about Binance’s BUSD stablecoin and staking programs.
Parallels Drawn to Anchor Protocol
The SEC drew parallels between Terraform’s defense and Binance’s arguments. It says both tried to separate token sales from developing the protocols where tokens could be staked.
SEC Lawsuit Still Ongoing
The SEC sued Binance for operating an unregistered exchange in June. Binance settled criminal charges with the DOJ in November but the SEC case continues. The agency hopes the Terraform ruling will bolster its arguments for denying Binance’s motions to dismiss.
Conclusion
The SEC is leveraging its court win against Terraform to strengthen its separate cases against Coinbase and Binance. It remains to be seen whether the Terraform ruling will impact the courts’ decisions on the exchanges’ motions to dismiss. The high-profile lawsuits are ongoing.
