The accusations involve securities cases, taking the LUNA case as an example, taking Binance and Coinbase to the SEC court!

The U.S. Securities and Exchange Commission (SEC) filed a request with the court on January 3 this year, hoping to cite the latest ruling against Terraform Labs in support of their dispute with cryptocurrency exchange Binance and Coinbase’s position in the legal battle.

The ruling holds that the cryptocurrencies UST and LUNA issued by Terraform Labs should be considered securities, which is of great significance to the SEC’s lawsuit against Coinbase. The SEC accused Coinbase of selling unregistered securities, so this ruling will have a profound impact on this dispute.

SEC submitted documents to the New York State Court

Want to leverage LUNA to win over Coinbase

Last Thursday (28th), the SEC In its ruling against Terraform Labs, the District Court for the Southern District of New York pointed out that the company’s founder Do Kwon allegedly issued and sold securities without registration. These securities include cryptocurrencies such as UST, LUNA, wLUNA and MIR. This ruling is regarded as an important basis for the SEC’s supervision of the cryptocurrency market.

The SEC considers this ruling to be relevant in evaluating certain issues in the Coinbase case because each crypto-asset issuer may attract investors with the expectation that its value will increase, consistent with the definition of a security.

Every crypto asset issuer, including the Coinbase platform, has investors expecting that the value of their investments will increase due to the founding team or an increase in resale in the secondary market, which meets the definition of a security.

The SEC also mentioned tokens such as SOL, ADA and MATIC, saying that they are unregistered securities like UST. The ruling highlights Coinbase’s role as a secondary market for cryptocurrencies and its involvement in facilitating the sale of unregistered securities.

SEC: BUSD and UST are also securities

The SEC also submitted the same ruling to the Washington court responsible for hearing its lawsuit against the exchange Binance. The SEC argued that Terraform Labs’ ruling can be a judge Amy Jackson provided the basis for rejecting Binance’s previous motion and pointed out that BUSD and UST should also be considered securities.

“Terraform Labs stablecoin is similar to the one currently used by Binance in an attempt to “artificially separate” its token sales from “developing and promoting” the Anchor protocol, which allows staking tokens to generate profits. This is similar to Binance’s offering of BUSD and its staking services, BNB yield pool, and Simple Earn program. ”

Previously, Binance and its former CEO CZ had filed a motion to dismiss, believing that the SEC had exceeded its regulatory authority and excessively exercised its power. It also expanded the standards and definitions of securities.

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