Attorneys representing the US Securities and Exchange Commission (SEC) have argued that supplemental documents filed by Dentons, the law firm representing Terraform Labs and Do Kwon, in support of its motion to dismiss lack sufficient support to dismiss the case.
The SEC's lawyers claim that the Binance.US transcripts and internal SEC emails submitted by the defense are irrelevant to the current case. They believe that the Howey test clearly defines the parameters of an "investment contract" and that TerraUSD (UST) should be classified as a security. At a court hearing on June 15, Dentons filed additional documents in support of its motion to dismiss the lawsuit brought by the SEC. The hearing focused on determining whether digital assets developed by Terraform Labs should be classified as securities under the criteria of an “investment contract.”
Dentons asserted that the algorithmic stablecoin UST is not a security, emphasizing its utility purpose rather than an investment contract. In support of its motion to dismiss, it filed additional documents, including the US House Financial Services Committee hearing on digital asset regulation and stablecoin offerings , the SEC's request for a restraining order against Binance.US, and Hinman's hearing from Binance.US. e-mail. SEC v. Ripple lawsuit. Defense attorneys highlighted “regulatory gaps” in classifying cryptoassets as securities, especially as the US Congress engages in discussions on a regulatory framework for digital asset and stablecoin offerings. In addition, they also believe that the SEC is going beyond the scope of securities law and relying on internal emails related to "investment contracts"to determine the status of security.
Judge Jed Rakoff, presiding over the case, announced that the motion to dismiss will be ruled on July 14. Dentons previously represented Kwon in challenging the SEC's investigative subpoena of Mirror Protocol in 2021 and in a class action in the Singapore High Court in 2022 on Kwon's behalf. The law firm also represents Terraform Labs in other cases.
Meanwhile, The Podgorica Lower Court in Montenegro Has Granted Bail to Quan and Forerser Terra Chief Technology Han Changjun. Recentlyly Dition Detention in Montenegro While A Court Decided South Korea's Extradition Request for Terra's Founder.
