News
Binance Gains Edge in SEC Case as Judge Rejects Key Claims
A U.S. judge has dismissed several key claims from the Securities and Exchange Commission (SEC) in a case against Binance. In a post shared by the cryptocurrency exchange today (Tuesday), Binance noted that the federal judge had dismissed multiple key arguments filed by the SEC, bolstering the company’s defense in its legal fight against the regulator.
Specifically, the court’s decision rejected the claim that cryptocurrency tokens, including Binance’s native BNB and its fiat-backed stablecoin BUSD, could be classified as securities. Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia ruled that these tokens do not meet the criteria for securities, thus rejecting the SEC’s broad claim.
Furthermore, the court rejected the SEC‘s claims that secondary market sales of BNB tokens on cryptocurrency exchanges constituted securities transactions. In addition, the court criticized the SEC’s claims that cryptocurrency tokens are inherently investment contracts.
According to Binance’s statement, the ruling mentioned that the focus should be on the circumstances surrounding each transaction rather than the tokens themselves. In the statement, Binance criticized the regulator for not providing sufficient evidence that secondary market sales of BNB The tokens were conducted with an expectation of profits, a crucial element according to the Howey test to classify something as a security.
As for its origin stable currency BUSD, the court reportedly rejected Binance’s BUSD claim that it was an investment contract. There was no evidence to suggest that BUSD was traded with an expectation of profit from Binance’s efforts, the exchange added.
Other requests to proceed
However, while the court rejected these claims, it allowed certain aspects, such as the SEC’s argument that direct sales of BNB were securities transactions, to proceed. These remaining claims reportedly face significant hurdles to substantiation, as the SEC must demonstrate that token purchases were made with investment expectations.
Binance has vowed to defend itself from the SEC’s regulatory efforts. The company is said to be advocating for fair and consistent oversight that fosters innovation and growth within the cryptocurrency market.
Amidst this development, Binance has already Limited services European users to comply with MiCA regulations. This move comes as new cryptocurrency regulations take shape in the region. Some of the services affected include access to copy trading, which the exchange made available on June 26.
A U.S. judge has dismissed several key claims from the Securities and Exchange Commission (SEC) in a case against Binance. In a post shared by the cryptocurrency exchange today (Tuesday), Binance noted that the federal judge had dismissed multiple key arguments filed by the SEC, bolstering the company’s defense in its legal fight against the regulator.
Specifically, the court’s decision rejected the claim that cryptocurrency tokens, including Binance’s native BNB and its fiat-backed stablecoin BUSD, could be classified as securities. Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia ruled that these tokens do not meet the criteria for securities, thus rejecting the SEC’s broad claim.
Furthermore, the court rejected the SEC‘s claims that secondary market sales of BNB tokens on cryptocurrency exchanges constituted securities transactions. In addition, the court criticized the SEC’s claims that cryptocurrency tokens are inherently investment contracts.
According to Binance’s statement, the ruling mentioned that the focus should be on the circumstances surrounding each transaction rather than the tokens themselves. In the statement, Binance criticized the regulator for not providing sufficient evidence that secondary market sales of BNB The tokens were conducted with an expectation of profits, a crucial element according to the Howey test to classify something as a security.
As for its origin stable currency BUSD, the court reportedly rejected Binance’s BUSD claim that it was an investment contract. There was no evidence to suggest that BUSD was traded with an expectation of profit from Binance’s efforts, the exchange added.
Other requests to proceed
However, while the court rejected these claims, it allowed certain aspects, such as the SEC’s argument that direct sales of BNB were securities transactions, to proceed. These remaining claims reportedly face significant hurdles to substantiation, as the SEC must demonstrate that token purchases were made with investment expectations.
Binance has vowed to defend itself from the SEC’s regulatory efforts. The company is said to be advocating for fair and consistent oversight that fosters innovation and growth within the cryptocurrency market.
Amidst this development, Binance has already Limited services European users to comply with MiCA regulations. This move comes as new cryptocurrency regulations take shape in the region. Some of the services affected include access to copy trading, which the exchange made available on June 26.