JAKARTA - Binance, celebrates its important milestone in its legal battle with the US Securities and Exchange Commission (SEC). The US federal court has rejected several claims filed against Binance, marking a significant victory over the wider crypto market.
Last weekend District Judge Amy Berman Jackson stated that BNB's secondary sales did not qualify as a security. At the same time, the judge also ruled that the sale of Binance's original stablecoin, BUSD, was not included in the securities law. Quoted from Coin Speaker, Binance said in victory for the industry, US federal courts rejected several SEC claims against Binance.
Last year, the SEC filed a lawsuit against Binance, accusing the company of violating securities laws. However, Judge Amy Berman Jackson rejected the claim by stating that instead of always labeling tokens as securities, regulators should consider the circumstances around every transaction.
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The decision limits the SEC's scope in overseeing secondary crypto exchange trading, which is a significant limitation to regulation. In addition, the court also ruled that the SEC cannot prove that buyers expect profits from BNB tokens in secondary market transactions, an important element under Howey's Test to define securities.
Despite winning a partial victory in a legal battle with the SEC, the way forward for Binance has not been completely smooth. The company is showing readiness to face more hurdles related to SEC allegations over BNB staking, BNB ICO token sales, and anti-fraud violations.
In addition, Binance.US stated its stance on Friday's court ruling in a post on X, stating that it anticipates the SEC case will continue to a further stage of discovery. What is striking is that the SEC has not found any evidence of wrongdoing on the Binance.US throughout an extensive 11-month discovery process where we have participated to date," the company said.
Binance.US also criticized the SEC's enforcement approach, describing it as an exaggerated act motivated by political interests under current leadership.
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