Paradigm Offers Support to Binance, Seeks Dismissal of Ongoing SEC Lawsuit

Crypto News- In a recent legal filing, Paradigm, a cryptocurrency investment firm, has filed an amicus brief challenging the ongoing lawsuit by the U.S. Securities and Exchange Commission (SEC) against Binance. Paradigm asserts that the SEC’s classification of cryptocurrency token sales as investment contracts poses a threat to the cryptocurrency ecosystem, affecting entities in the U.S. and beyond.

Paradigm Offers Support to Binance, Seeks Dismissal of Ongoing SEC Lawsuit

The firm argues that the SEC’s approach incorrectly labels any crypto asset with speculative potential as a security, contending that the concept of an ‘investment contract’ in securities law should be applied to regular asset transactions. Paradigm advocates for congressional intervention to establish a regulatory framework for cryptocurrencies, seeking to curb what it perceives as the SEC’s overreach, a matter of concern for crypto communities and Congress alike.

Legal proceedings have been extended due to disputes over document discovery and depositions. The SEC claims that Binance withheld crucial documents, while Binance argues that the SEC imposed unreasonable demands after a hearing on September 18. The court has ordered the parties to file a joint status report by October 30. The ongoing SEC lawsuit involves Binance, its CEO Changpeng Zhao, and its U.S. subsidiary Binance U.S., who face allegations of money laundering and violations of securities laws.