The Terra lawsuit judge ruling in favor of the U.S. SEC was a major win for the securities regulator after multiple losses risking even its oversight power. The SEC now urging courts to consider the Terra ruling in Binance, Coinbase, and other lawsuits and announce orders in favor of the SEC highlighting that defendants have violated securities laws.
Coinbase Vs SEC: Files Terra Lawsuit Supplement Authority
Plaintiff U.S. Securities and Exchange Commission (SEC) has filed a notice of supplemental authority with the court, as per the latest filing with the court dated January 4. The SEC wants the court to consider ruling in SEC v. Terraform Labs in support of its opposition to Coinbase’s Motion for Judgment on the Pleadings.
The SEC cites “The Terraform court resolved in the SEC’s favor issues relevant to the consideration of Defendants’ motion in this case,” seeking judgment in its favor in the Coinbase lawsuit.
The SEC claims that the court in Terra case addressed the definition of “investment contract” to reject the defendants’ efforts to “cast aside decades of settled law” and that an investment contract doesn’t mean a contract, transaction, or scheme.
In addition, the court applied ‘Howey Test‘ to rule UST, LUNA, wLUNA, and MIR as investment contracts, therefore, are securities. SEC said it is relevant regarding Coinbase’s listing and offering unregistered securities to investors.
Furthermore, the court granted summary judgment to the SEC on its claim that defendants violated Section 5 of the Securities Act of 1933. The SEC seeks a similar summary judgment against Coinbase.
SEC Says Terra Ruling Relevant in Binance Lawsuit
CoinGape first reported that the U.S. SEC filed a notice of supplemental authority in the lawsuit against Binance, Binance.US, and Changpeng Zhao on January 3. The SEC argues Terra ruling is relevant in the case and can address the state to deny motions to dismiss the lawsuit.
The SEC also filed supplemental authority to consider the Binance-DOJ guilty plea and settlement. Binance and CZ hit back at SEC for bringing irrelevant and impermissible aspects in completely distinct case.