News
SEC Rules Crypto Tokens Not Securities: Big Win for Crypto
- A US court has ruled that crypto tokens are not securities, challenging the SEC’s stance on Binance.
- Binance has delisted several cryptocurrency pairs, including $BTC and $ETH, which could impact the cryptocurrency market overall.
- Following the news, the 24-hour cryptocurrency market volume increased by 7.57%, while the meme coin market volume increased by 2.24%.
The 2023 SEC Case Against Binance Has Come to a Head – Cryptocurrencies and BNB sales are not securitiesBinance announced the victory yesterday, stating that BNB Sales Successfully Passed Howey Test.
The court held that the SEC’s approach confused the issues and ignored prevailing U.S. Supreme Court precedent. The court also emphasized that attention should be paid to whether the circumstances surrounding each transaction make it a securities transaction.Binance
Not paying taxes on cryptocurrency earnings (think 10x-20x profits) is very bullish for all tokensespecially those based on BNB such as PlayDoge.
On the other hand, Binance only announced the delisting of major cryptocurrency pairsincluding several $BTC and $ETH (such as BTC/AEUR and ETH/AEUR). This could have a negative impact on the market, the extent of which remains to be seen.
Let’s take a look at why the SEC ruling is in favor of cryptocurrencies and what the future may hold for crypto tokens.
How does the SEC ruling affect cryptocurrencies?
The SEC had previously said that 68 crypto tokens (including $ADA, $MATIC, $AXS, and $BNB) were securities, raising concerns among investors across the market.
Yesterday’s ruling means two things:
- Cryptocurrency profits are not taxed as securities
- Cryptocurrencies could go bullish
The apocalyptic scenario that many investors had imagined did not materialize and we could soon see a more bullish market.
The 24-hour cryptocurrency market volume is already increased by 7.57%reaching $57.81 billion. This caused many tokens to increase, such as $ZK (+2.41%) and $CFX (+2.28%).
Meme coins are green toowith a 24-hour trading volume up 2.24%. Several tokens have risen:
Bitcoin ETFs have also recently received a massive influx of $129 millionwhich could bode well for Bitcoin and $BTC related projects like 99Bitcoin.
Binance’s Legal Dispute With the SEC It’s not over yet, as the next court hearing will be on July 9. But the company is confident in its position.
The court on Friday ruled that the SEC’s case against Italian: https://t.co/AZwoBOh0gq will continue. We were prepared for this and look forward to this case moving forward in the legal process.Italian: https://t.co/AZwoBOh0gq It was founded for the express purpose of serving the United States…
— Binance.US 🇺🇸 (@BinanceUS) July 1, 2024
It It remains to be seen how the situation will evolve and whether this will have a further impact on cryptocurrency prices.
Why did Binance remove cryptocurrency pairs and what does it mean?
A couple of hours ago, Binance announced that it would be delisting several cryptocurrency pairs:
- AI/TUSD
- BTC/AEUR Exchange Rate
- CHR/BNB
- ETH/AEUR
- GAS/FDUSD
- LQTY/FDUSD Currency Exchange
These changes were part of Binance risk management strategies and market stability.
Historically, such moves by influential exchanges like Binance have has had a significant impact on cryptocurrency market sentiment.
Bitcoin and Ethereum have already has dropped nearly 4% in the last 24 hoursprobably because of this news.
All the removed tokens from the list (except Chromia) have also decreased in the last day, although it is It is unlikely that they will spread FUD throughout the market.
Binance has a history of delisting cryptocurrencies it deems risky and unstable, so IInvestors are already used to this.
What does the future of cryptocurrencies hold?
THE SEC’s Favorable Ruling Boosts Investor Confidence of how much the deletion of the cryptocurrency pair from Binance entails.
The SEC’s potential ruling that cryptocurrencies should be classified as securities poses the biggest threat to the cryptocurrency industry.
Following this news, community feeling should improve significantlywhich could lead to an increase in the prices of all coins.
Disclaimer: The views expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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