Binance.US’ legal team will be allowed to address “whether a digital asset remains a security in perpetuity” and staking as a security in court.
Federal Judge Amy Berman Jackson — overseeing the United States Securities and Exchange Commission case against Binance, Binance.US and former CEO Changpeng Zhao — has ordered a court review of whether digital assets are securities.
In a minute order dated Jan. 18 in the U.S. District Court for the District of Columbia, Judge Jackson said she would hear arguments on how the SEC treated cryptocurrencies under current regulatory and legal frameworks. Lawyers representing Binance.US will be allowed to address “whether a digital asset remains a security in perpetuity” and the SEC’s allegations that staking may be considered a security.
“The Court intends to hear argument on [whether an investment contract must involve a contractual undertaking and] whether the SEC ‘misunderstands the meaning of “scheme” in Howey,’ from one defense attorney only,” said Judge Jackson. “Similarly, although both memoranda address the major questions doctrine, and both raise background questions about whether litigation is the appropriate way for the SEC to proceed to oversee the crypto industry at all, one attorney should be assigned to argue that issue for the defense.”
