By
Mayowa Adebajo
July 4th, 2024
Binance said that in a victory for the exchange, the US federal court has dismissed several claims against the exchange. The exchange said that it is ready to address additional legal hurdles that come its way.
Amid its ongoing legal tussle with the US Securities and Exchange Commission (SEC), popular crypto exchange Binance is celebrating important victory milestones along the way. Binance said that the recent court decisions dismissing several SEC claims is a noteworthy victory for the broader crypto market.
Over the last weekend, the district court Judge Amy Berman Jackson stated that the secondary market sales of BNB do not qualify as securities. At the same time, the judge also ruled that the sale of Binance’s native stablecoin BUSD also didn’t fall under the securities laws. “In a victory for the industry, a US federal court dismissed several SEC claims against Binance,” said the exchange.
In a victory for the industry, a US federal court dismissed several #SEC claims against #Binance, ruling that:
1) Crypto tokens are not securities,
2) BNB sales on secondary exchanges were not adequately alleged to be securities,
3) BUSD is not a security.Read more ⤵️…
— Binance (@binance) July 2, 2024
The SEC had slapped a lawsuit on Binance last year, accusing the exchange of violating security laws. However, Judge Amy Berman Jackson has dismissed the claims stating that instead of labelling the tokens as securities always, the regulator should consider the circumstances surrounding each transaction.
The ruling curtails the SEC’s scope in overseeing secondary crypto exchange trading, serving as a significant regulatory constraint. Moreover, the court ruled that the SEC did not prove that buyers expected profit from BNB tokens in secondary market transactions, a pivotal element under the Howey Test for defining securities.
Binance Shows Confidence to Face the Legal Battle
While Binance gets a partial victory in the legal battle with the SEC, it’s not a clear road ahead. The exchange has shown readiness to steer clear of further hurdles of SEC’s charges over BNB staking, BNB token ICO sale, and anti-fraud violations.
Additionally, Binance.US expressed its stance on the Friday court ruling in a post on X, stating that it anticipates the SEC case progressing into further discovery stages. “Notably, the SEC has yet to identify any evidence of wrongdoing on the part of Binance.US throughout the extensive, 11-month discovery process in which we have participated to date,” said the exchange.
Furthermore, Binance.US criticized the SEC’s enforcement approach, describing it as politically motivated overreach under the current leadership.