Judge Accepts Amicus Brief Filed by Circle
United States District Judge Amy Berman Jackson has signed multiple orders to clear pending motions in the ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against crypto exchange Binance. The judge cleared an amicus brief filed by Circle, the issuer of USD Coin (USDC) stablecoin, just before a crucial hearing on Oct. 12. Circle argued that assets pegged to the U.S. dollar, like USDC, are not securities, as buyers do not expect any profit from acquiring them.
What is an Amicus Curiae?
An amicus curiae is a person or group that is not a party to a legal dispute but is permitted to assist the court by providing information, expertise, or insight into the problems in the case. In this case, Judge Amy Berman Jackson accepted Circle as amicus curiae in support of neither party in the defendants Binance and CEO CZ’s motions to dismiss the lawsuit. However, the amicus curiae may only participate in oral arguments with the court’s permission.
SEC Lawsuit Against Binance
The SEC filed a lawsuit against Binance on June 5, bringing a total of 13 charges against the cryptocurrency exchange. The charges include unregistered securities sales of BNB and BUSD tokens. The SEC also argues that Binance operated illegally in the United States and failed to register as a broker-dealer clearing service. In response, Binance and its CEO, Changpeng Zhao, petitioned the court on Sept. 22 to dismiss the SEC lawsuit, claiming that the SEC had overstepped its powers and failed to establish clear norms for the sector before the litigation.
