WASHINGTON D.C. – Lawyers representing Terraform Labs founder Do Kwon have requested a U.S. court dismiss charges made by the SEC against their client, citing lack of jurisdiction, court filings show. 

Last week, the SEC filed securities fraud charges against Kwon related to the crash of his stablecoin $UST in May 2022. Kwon’s lawyers submitted a 47-page document arguing that the UST stablecoin is a currency and not a security and therefore not under the SEC’s purview. 

Meanwhile, SEC chairman Gary Gensler has been facing a growing chorus of criticism over regulating crypto through enforcement actions that could hurt the SEC’s case against Kwon. The case is being closely watched by industry experts as it could set a precedent.

The SEC has until May 12 to oppose the motion to dismiss.