US SEC Cites Terraform Case in Coinbase, and Binance Rulings

Tanzeel Akhtar
Last updated: | 1 min read
US SEC Coinbase Binance
Source: Pixabay

The US. Securities and Exchange Commission (SEC) has cited the Terraform Labs recent ruling during the Coinbase and Binance hearings strengthening its claim that the cryptocurrency exchanges went against the securities law.

On 28 December, the SEC ruled that Terraform Labs tokens UST and LUNA should be deemed securities – citing that Terraform Labs offered and sold unregistered securities, in violation of Sections 5(a) and 5(c) of the US Securities law.

In the most recent filing regarding the Coinbase lawsuit on Thursday the regulator is leveraging the same argument with cryptocurrency exchange Coinbase and Binance in separate lawsuits. Both exchanges are in an ongoing legal battle with the SEC.

On Tuesday, in a separate document, the SEC mentioned Terraform Labs case is relevant and said that, Binance case is similar to its “so-called stablecoin”  BUSD and its staking-as-a-service, BNB vault and Simple Earns programs.

Last year, Coinbase came under scrutiny as the SEC continued its crackdown on the crypto industry. In 2023, there was renewed concern among Coinbase investors that tokens listed on the exchange could be considered securities under SEC rules, a change in classification that would bring a host of new regulatory requirements with it.

Binance to Delist Eight BUSD Trading Pairs

In October, Binance revealed its intentions to delist eight Binance USD (BUSD) trading pairs as part of a broader plan to withdraw full support for the stablecoin by 2024. Making plans to suspend AMB/BUSD, DASH/BUSD, FIDA/BUSD, HARD/BUSD, HOT/BUSD, IOST/BTC, NULS/BUSD, PORTO/BUSD and REQ/BUSD isolated margin borrowing by early September.

On Thursday, Binance warned it may soon delist 10 prominent privacy coins, including Monero, Zcash, and Horizen due to regulatory concerns. In a statement, Binance said these tokens received a “monitoring tag” and could fail to meet listing requirements related to team commitment, network security, trading volume, and other factors.

Coinbase and Binance were unavailable for comment during the time of publication.