Significant victory for cryptocurrency secondary market sales as judge rejects portion of SEC lawsuit against Binance

The SEC argued that BNB token secondary sales were securities, but US District Judge Amy Berman Jackson rejected their argument.

The judge's decision allows the majority of the agency's case against Binance to go forward.

To illustrate how the Howey Test takes into account the practicality of financial transactions, the judge referenced a decision from the Ripple case.

On Saturday, Binance's native coin, BNB, traded at $571.40, a decrease of over 3% from its value last week.
While dismissing a portion of the SEC's case against Binance, a US judge provided market participants more clarification about the secondary market transactions of digital assets. Binance Coin (BNB), the native token, is allegedly being sold on an exchange or in the secondary market as a security, according to the SEC's complaint.

A major victory for cryptocurrency traders was announced when the presiding judge referenced a previous decision in the SEC vs. Ripple case.

Most of the SEC's case against Binance can go forward
On Friday, Judge Amy Berman Jackson rejected a portion of the SEC's case against Binance. The decision is a watershed moment for the cryptocurrency market, as it rules that Binance's BNB token secondary sales are not securities according to the Howey Test.

Judge Analisa Torres ruled in the SEC vs. Ripple litigation that XRP sales on the secondary market do not meet the investment contract definition because they do not fulfill the Howey test.

The SEC has been advocating the idea that cryptocurrency tokens are more akin to investment contracts than securities. Crypto traders may breathe a sigh of relief as Judge Jackson's decision, which finds that assets do not meet the Howey test and are hence not investment contracts, addresses the problem of cryptocurrencies being sold on the secondary market.

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