Judge Jackson dismissed partial claims in leading crypto exchange Binance and the SEC lawsuit.
The SEC has targeted Coinbase, Kraken and Consensys Inc. with similar charges.
The US District Court of Columbia’s Judge Amy Jackson, passed her verdict for the Binance Vs. SEC case, dismissing partial claims of SEC. One of the dismissed claims, the SEC’s charge that Binance violated the Securities Act, received immense positive support from the crypto community. This is due to the judge’s statement that a crypto asset initially traded as security can progress from the designation.
Additionally, while most of the SEC’s claims were allowed to proceed, the aforementioned claim, Binance’s secondary sales claim, and Simple Earn sales were dismissed. Notably, along with Binance’s lawsuit, the SEC also filed charges against Coinbase, Kraken, and Metamask developer Consensys Inc. on Friday.
According to sources, the SEC charged Consensys Inc. for allegedly selling securities without proper registrations. Leading crypto firm Ripple also faced a similar charge in 2020. The firm’s lawsuit received a final court statement and a settling agreement earlier this month.
Notably, Judge Torres, who passed the final verdict, ruled that Ripple’s token XRP is not a security. However, the SEC lawyers stated the ruling as an ‘outlier’ that no other district judges agreed with.
How is Judge Jackson’s Ruling Impacting Crypto’s Regulatory Battle?
The recent Judge Amy Jackson’s ruling contradicts aforementioned SEC lawyers’ statement, giving the crypto firms an upper hand in the regulatory battle. Additionally, she referred to Ripple’s verdict underscoring the SEC’s unmerited claims against several crypto firms.
Judge Amy Jackson in her court statement citing Ripple’s statement, said:
“The Court finds these observations to be clarifying and persuasive, as the differentiation is consistent with the Supreme Court’s earliest pronouncements concerning the meaning of the term “investment contract” buried within the lengthy list that comprises the definition of a “security”.”
Importantly, this statement holds the prospect of aiding the crypto community against the SEC’s increasing scrutiny. Until recently, Ripple’s statement remained stand-alone in the regulatory sector. However, with more judges stating their agreements, the scales begin tipping towards a crypto win.
On the other hand, Coinbase and Kraken, facing similar charges, and other crypto-based firms can also utilize Judge Jackson’s statement to enhance their defense.
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