Crypto exchange Binance, its U.S.-primarily based subsidiary Binance.US and its CEO Changpeng Zhao requested the court docket to brush off a lawsuit filed by the U.S. Securities and Swap Commission (SEC).

In a 60-page joint motion filed on Sept. 21, attorneys for Binance and Zhao said that the SEC’s lawsuit had no foundation below the for the time being enacted securities prison guidelines.

The SEC sued Binance, Binance.US and Zhao in June, declaring that the crypto exchanges, on the course of Zhao, had violated securities prison guidelines by providing unregistered securities to U.S. investors.

Binance’s attorneys claim that the SEC is overreaching its authority, and in attempting to claim regulatory energy over the crypto industry, is distorting the context of securities prison guidelines. Here’s whatever the very fact that SEC Chair Gary Gensler publicly acknowledged that no regulatory framework existed below its authority as as of late as 2021, the attorneys said.

“In slack 2022, alternatively, the SEC all right away reversed course and asserted that nearly about all crypto sources are securities discipline to its authority. Soon after, and regardless of ongoing legislative debate referring to crypto sources, the SEC began enforcing its fresh space by procedure of litigation,” stated the submitting.

The argument that the regulator overstepped its authority is one who Binance has extinct sooner than, in its motion to brush off a lawsuit filed by the U.S. Commodities and Futures Buying and selling Commission (CFTC) that alleges the firm violated derivatives prison guidelines by providing its merchandise to U.S. possibilities.

Buying and selling volumes on Binance.US fetch plummeted after files of the SEC’s lawsuit, and the exchange has now transitioned to being a “crypto-handiest” exchange. Kaiko files showed that weekly buying and selling volumes on the exchange fetch fallen to $40 million, marking a ninety 9% decline from the $5 billion recorded in March.