The U.S. SEC asks the court to use the Terra case ruling in its lawsuit against Binance

The U.S. SEC submitted a supplementary basis notice to the court on January 3. The SEC asked the court to consider the ruling in SEC v. Terraform Labs in its lawsuit against defendants including Binance, Binance.US, and CZ because similar arguments exist in those cases. "This view is closely relevant to the court's consideration of defendants BAM Trading Inc and BAM Management US Holdings Inc's motion to dismiss," the SEC said in its filing. In addition, the SEC claimed that if it draws on the findings of the Terra case, the court should deny the above defendants. Seeking a motion to dismiss the lawsuit. The SEC said in the filing that the court defined “investment contract” in the Terra case to reject the defendants’ efforts to “throw aside decades of established law” and that an investment contract does not mean a contract, transaction or plan. In addition, the court also applied the "Howey test" to determine that UST, LUNA, wLUNA and MIR were investment contracts and therefore securities. The SEC said the ruling was related to Binance-related stablecoin BUSD, staking services, BNB Vault and Simple Earn programs. (CoinGape) Previously, in December 2023, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York ruled in a summary judgment that Terraform Labs violated federal securities laws when selling its cryptocurrency to the public because it illegally sold unregistered cryptocurrency securities LUNA and MIR. Summary judgment could impact eventual trial over Terraform Securities violations. At the same time, the judge prevented two other defense witnesses from appearing, one of whom was to testify about the activities of Terraform’s custodial wallet, and the other who was to outline Terraform’s cryptoeconomic system to the jury.