Binance could enhance its defense strategy against the US Securities and Exchange Commission (SEC) by leveraging insights from an unrelated legal case.

On April 26, Binance and affiliated parties submitted a government document from a separate case involving the conviction of Abraham Eisenberg, an exploiter of Mango Markets, by a jury on April 18.

Binance's defense team highlighted a specific paragraph in which the US government addressed whether USDC, a stablecoin, qualifies as a security. Attorney Damian Williams, representing the US government, asserted that there is no factual basis for considering USDC a security, emphasizing that holders of USDC do not anticipate profits due to its connection to the US dollar.

This argument effectively closed off a potential exception that might classify MGNO Perpetuals, linked to the value of USDC, as a mixed swap.

While this argument assisted government prosecutors in the Eisenberg case, it could also offer benefits to defendants confronting securities violations in other cases, such as Binance.

However, there are limitations to the argument's applicability. The SEC has accused Binance of various securities violations, each focusing on distinct offerings. Additionally, the recent filing pertains solely to the SEC's civil securities lawsuit against Binance Holdings Limited, its former CEO Changpeng Zhao, and affiliated entities. It does not relate to a criminal case in which Zhao has pleaded guilty and awaits sentencing.

The Eisenberg case may also offer support to defendants in other securities cases, including Coinbase, for similar reasons. Notably, the SEC filed lawsuits against Coinbase and Binance within days of each other in June 2023, and it has pursued various other suits against exchanges like Kraken in November 2023.