This legal action follows Binance's admission to various legal violations in November 2023, which resulted in a $4.3 billion fine and Zhao serving four months in prison.

This legal battle stems from a year-long dispute that began with the SEC's initial lawsuit against Binance in June 2023, which accused the company of unregistered securities operations.

Binance's legal team references the SEC vs. Ripple case, where a court ruled that XRP was only a security when sold to institutional investors, arguing that the SEC is ignoring this precedent.

The motion seeks to reject the SEC's request for disgorgement and to prevent Zhao from participating in the securities market, citing a lack of evidence of harm to customers.

On November 4, 2024, Binance and its former CEO Changpeng Zhao filed a motion to dismiss an amended complaint from the U.S. Securities and Exchange Commission (SEC) regarding alleged violations involving several cryptocurrencies.

Binance's motion highlights a broader trend of legal pushback against regulatory overreach, as companies seek clearer operational guidelines.

The motion also points out the SEC's recent abandonment of claims related to Ethereum transactions, suggesting selective enforcement and emphasizing the need for clear regulatory standards.

Binance argues that the SEC's allegations of illegal securities trades lack a coherent legal foundation and fail to clarify its standards.

The SEC's complaint claims that Binance conducted 'blind transactions' without full disclosure to buyers about the origins of the assets, a common issue in the crypto industry.

A previous ruling by a U.S. federal judge determined that Binance's BUSD and Simple Earn programs, as well as secondary sales of BNB, are not investment contracts.

As the case unfolds, the SEC's regulatory approach is expected to significantly impact the future of cryptocurrency regulations in the U.S., affecting other companies in the industry.

In their filing, Binance contends that the SEC is misinterpreting a court ruling that stated crypto assets are not inherently securities and that secondary market transactions should not be classified as such.