đď¸ Binance Faces Mixed Court Ruling: SEC Lawsuit Advances Amid Dismissals
The SEC, under the leadership of Gary Gensler, initiated legal action against Binance in June 2023, alleging that the exchange offered unregistered securities and operated unlawfully within the U.S.
Binance, a major cryptocurrency exchange, encountered a setback as a United States court declined to dismiss several claims brought against it by the Securities and Exchange Commission (SEC).
In a court filing on June 28, Judge Amy Berman Jackson specified that claims concerning Binanceâs staking program, the initial coin offering of BNB, anti-fraud violations, and the SECâs assertion that former CEO Changpeng âCZâ Zhao acted as a âcontrol personâ will proceed.
Additionally, the court ruled that Binance should have been registered under the Exchange Act.
However, Judge Jackson did dismiss claims related to secondary market sales of BNB and transactions involving the Binance USD (BUSD) stablecoin.
Her decision to dismiss the BNB secondary market sales claim echoed a similar ruling by Judge Analisa Torres in a previous SEC case against Ripple.
Scott Johnsson, a finance lawyer, characterized the ruling as a significant setback for the SEC, while Fox Business reporter Eleanor Terrett anticipated its implications for other cryptocurrency platforms such as Coinbase, Kraken, and Consensys.
Judge Jackson also rejected the SECâs claims regarding Binanceâs passive income feature, âSimple Earn,â scheduling a court hearing for further proceedings on July 9.
The SEC, under the leadership of Gary Gensler, initiated legal action against Binance in June 2023, alleging that the exchange offered unregistered securities and operated unlawfully within the U.S.
Binance and CZ sought to dismiss the lawsuit approximately three months later, arguing against the SECâs purported overreach.
Despite these legal challenges, Binance maintains its status as the worldâs largest cryptocurrency exchange.