⚠️ Binance Secures Partial Victory in SEC Lawsuit, Discovery Phase Ends
● Binance’s partial victory in the SEC lawsuit dismissed claims related to BUSD, Simple Earn, and secondary BNB sales.
● Judge Jackson’s ruling supports the doctrine that crypto tokens and programmatic sales are not securities.
● The SEC may amend its complaint against Binance, seeking more evidence to strengthen its case.
In a recent development in the SEC lawsuit against Binance, its former CEO Changpeng Zhao, and Binance.US, Judge Amy Berman Jackson has ended the discovery phase. The court dismissed the SEC’s claims regarding sales of BUSD, Simple Earn, and secondary sales of BNB.
Judge Jackson issued several minute orders to conclude the discovery phase. According to court filings, she asked the parties to file a joint submission by July 29 for further proceedings. Binance and the SEC must set deadlines for any motion to amend the complaint or seek relief from the recent motion to dismiss the decision.
🔸 Growing Legal Tensions and Proceedings
Parties seeking amendments or relief must submit plans for how discovery would proceed if such motions are filed. They must also consider whether discovery should occur in phases. Additionally, a minute update on scheduling conference proceedings was added to the docket for meeting and conferring on filing a joint submission by the court’s deadline.
Binance’s partial victory has sparked positive sentiment in the crypto market. The judge indirectly sided with Judge Torres’ doctrine on crypto secondary sales and programmatic sales not being securities. The court ruled that crypto tokens are not securities and that sales of BNB on secondary exchanges were not sufficiently alleged to be securities. Stablecoin BUSD was also not classified as a security, based on US DOJ filings in the Mango Markets lawsuit that contradicted the SEC’s stance.
