The recent lawsuit between the US Securities and Exchange Commission (SEC) and Binance has taken an intriguing turn, as the SEC filed a notice of supplemental authority citing the judgment in SEC v. Terraform Labs as a significant precedent.
The SEC’s strategic move aims to leverage the Terra ruling in its case against Binance, Binance.US, and former CEO Changpeng ‘CZ’ Zhao.
However, legal expert Bill Morgan, known for his pro-crypto stance, argues that the Terraform Labs decision may not be directly relevant to the SEC’s case against Binance and Coinbase.
Terra Ruling In Binance And Coinbase Lawsuits
Dave Weisberger, co-CEO of CoinRoutes, commented on the Terra case, highlighting that its key focus was on the marketing of UST, LUNA, and yield through Anchor Protocol by Do Kwon, co-founder and former CEO of Terraform Labs.
Weisberger emphasized that the case revolved around defining an investment contract rather than the tokens themselves. This perspective is crucial to understanding the SEC’s argument and potential impact.
Bill Morgan agrees with Weisberger’s assessment, stating that the Terraform Labs case’s application of the Howey test may be as singular and standalone as the Torres decision on Ripple’s sale of XRP.
Morgan suggests that the Terra ruling may have limited relevance and persuasive value in the context of the Coinbase and Binance lawsuits.
Morgan emphasizes that legal cases often turn on their specific facts, particularly when
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Author: Ronaldo Marquez
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