SEC Argues Against Motion to Dismiss Case of Terraform Labs & Do Kwon

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• The SEC has argued against Dentons’ motion to dismiss the lawsuit brought against Terraform and Do Kwon.
• The lawyers for Terraform Labs and Do Kwon submitted documents such as a US Congress hearing, Binance.US complaint, and Hinman emails in support of their motion.
• The SEC’s counsel believes that the documents do not support dismissing the case and that UST should be classified as a security.

SEC Argues Against Dismissal of Lawsuit

The United States Securities and Exchange Commission (SEC) has challenged lawyers representing Terraform Labs and Do Kwon’s motion to have their lawsuit dismissed. They argue that the Howey test clearly defines an “investment contract” and believe UST should be classified as a security.

Documents Submitted by Defense

In order to support their motion, Dentons — the law firm representing Terraform Labs and Do Kwon — submitted supplementary documents to help get the case dismissed. These documents included a U.S House Financial Services Committee hearing on digital asset regulation, an SEC request for a restraining order against Binance.US, and Hinman emails from an SEC vs Ripple lawsuit.

Arguments from the SEC’s Counsel

The SEC’s counsel contends that these additional documents are not relevant enough to dismiss this particular case. They argue that UST should be classified as a security according to the Howey test’s definition of an “investment contract”.

Court Hearing on June 15th

During the court hearing on June 15th, Dentons presented these supplementary documents in hopes of having their motion approved by the court. The focus of this hearing was whether or not UST would be considered a security under an “investment contract” criteria according to established laws such as Howey Test regulations set forth by the U.S government..


Ultimately, it is up to the court whether or not they agree with Dentons’ submission of evidence in order for them to successfully have their lawsuit dismissed by proving that UST does not meet criteria of being deemed as a security through an “investment contract” definition set forth by Howey Test regulations established by U.S government laws .

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