SEC Binance: Judge Amy Berman Jackson of the U.S. District Court decided to let most of the SEC’s lawsuit against Binance, a cryptocurrency exchange, and its founder, Changpeng Zhao, proceed.
Judge Amy Berman Jackson ruled on the SEC’s case against Binance and Changpeng Zhao, allowing charges related to their ICO, ongoing BNB sales, and various services to proceed, and she dismissed claims related to secondary BNB sales and the Simple Earn program.
Judge Advances SEC’s Case Against Binance
SEC Binance: Binance and the U.S. Securities and Exchange Commission (SEC), a federal judge has decided to move forward with a significant part of the SEC’s case against the cryptocurrency exchange. This decision, issued on June 28, marks a crucial moment in the regulatory challenges Binance is confronting in the United States…
The SEC accused Binance of offering unregistered broker and trading services for digital assets in the U.S., similar to charges against other exchanges. Judge Jackson emphasized the difference between investment contracts and tokens, rejecting arguments that the SEC cannot enforce rules in crypto cases. Changpeng Zhao also faces a separate criminal charge.
SEC Lawsuit Alleges Illegal Securities Sales by Binance
SEC Binance: The SEC filed a lawsuit against Binance, claiming the exchange illegally sold securities without registering them with the commission. This lawsuit is part of a larger effort by U.S. regulators to enforce securities laws on cryptocurrency exchanges.
The Gary Gensler-led SEC sued Binance back in June, 2023, claiming Binance offered the sale of unregistered securities and was operating illegally in the U.S.
Binance and CZ filed to toss the SEC lawsuit about three months later, claiming the SEC overstepped its legal authority.
Charges Allowed to Proceed & Dismissed Charges
SEC Binance: The SEC’s charges that will continue against Binance include allegations regarding their initial coin offering (ICO), ongoing sales of BNB, BNB Vault services, and staking offerings. These claims accuse Binance of conducting unregistered broker, trading, and clearing services for digital asset securities within the United States. The SEC also accuses Binance of fraud in connection with these activities.
The judge agreed to dismiss charges against Binance and Zhao concerning the secondary sales of BNB and the Simple Earn program. These specific allegations will no longer be part of the legal proceedings between them and the SEC.
The court took into account how tokens are used in real-world transactions when applying securities laws. This decision aligns with a previous ruling in the SEC’s case against Ripple Labs. The regulator has brought similar charges against Coinbase, Kraken and – as of Friday morning – Consensys and MetaMask.
SEC Binance: Court’s Decision
SEC Binance: The judge dismissed arguments that the SEC lacks authority to enforce actions against crypto firms under the “major questions doctrine.” This means the SEC can proceed with its enforcement actions against cryptocurrency entities.
Binance’s legal case is separate from Zhao’s criminal charge, which involves violations related to sanctions.
Judge Amy Berman Jackson, presiding over the case in the District Court for the District of Columbia, made a significant decision to allow most of the SEC’s case to proceed. This indicates the court agrees with the SEC’s grounds for pursuing legal action against Binance. However, the judge dismissed a charge related to secondary sales, indicating that the primary focus of the lawsuit will be on Binance’s initial sale of securities
the judge has scheduled a hearing for July 9 to further address the case…
Market Reaction
SEC Binance: This court decision is a blow to Binance, which is already being watched closely by governments everywhere. It shows how hard it is for crypto exchanges to follow all the rules, since they keep changing around the world. Binance might have to follow more rules and face punishments depending on how the case goes. Binance says they want to work with governments and follow the law.
The cryptocurrency market is closely watching these legal proceedings. Regulatory changes like this can affect how investors feel about platforms like Binance, which are important for trading digital assets.
Seven U.S. states have either revoked or not allowed Binance to renew its money transmitter licence — including Alaska, Florida, Maine and North Carolina. Despite the lawsuit, Binance remains the largest cryptocurrency exchange in the world, with over 200 million users and managing assets worth $100 billion.
Future outlook
SEC Binance: This lawsuit between the SEC and Binance is a big deal for cryptocurrency. The judge’s decision means Binance might have broken some rules, but not all the ones the SEC accused them of. This could set an example for how governments regulate other crypto exchanges in the future. Everyone’s watching to see how Binance and other exchanges will change their ways to follow the rules. This whole situation could affect how the entire crypto market works.
Also Read: Binance Exchange Raises Security Against Account Misuse
