Written by: Observer Lao Wang
Today, the Washington, D.C. Court of the United States released a trial document showing that the SEC notified Binance that $BNB $BUSD are not securities!
In fact, among all cryptocurrencies, Binance Coin $BNB is arguably the most securities-like, not only because Binance is one of the few cash cow companies in the crypto industry, but also because, like other US-listed companies, it has been buying back (destroying) Binance Coins.
For example, this month the BNB Foundation announced that it had completed the 28th BNB quarterly destruction, which destroyed approximately 1.643 million BNBs, worth approximately US$970 million.
Not only that, Binance Coin also has airdrops more frequently than stock dividends. According to statistics from big V, in the first half of 2024 alone, BNB holders received project token airdrops worth US$1.841 billion, accounting for 2.16% of the current total market value of $BNB.
This guy with thick eyebrows and big eyes looks like a security no matter how you look at him. How can he not be a security?
The United States has four criteria for judging securities:
Invest of Money
Is it a common enterprise?
Is there an expectation of profit?
Whether the investor's income is derived from the efforts of others
From this point of view, Binance Coin should meet all the requirements:
It costs money to buy Binance Coin
Isn’t it just for Binance’s crypto business?
Isn’t the purpose of buying coins to make money?
Isn’t it just relying on Binance’s talents and various project parties to make money for investors?
In fact, in order to comply with regulations, Binance cancelled the profit repurchase mechanism as early as the end of 21 and replaced it with automatic destruction.
After changing to the automatic destruction mechanism, the amount of BNB to be destroyed each quarter will be automatically calculated based on the BNB market price at the time and the number of blocks generated on the BNB chain during that period.
In other words, in theory, BNB destruction has nothing to do with the profits of Binance Exchange, but is more related to the behavior of the BNB chain.
Moreover, Binance’s various airdrops also require users to operate on their own.
After such a series of operations, the expected income of BNB investors can be said to be "Derived From The Efforts of Others".
At the same time, the SEC insists that Solana tokens are securities. . .
It seems that the SEC may use whether it can make money from fines as the actual criterion for judgment.
The SEC has reached a settlement with Binance and will probably impose a fine on Binance.
Many friends asked, wasn’t there a fine of more than 4 billion yuan before?
That was a penalty for CZ, and it does not conflict with the penalty for Binance this time!
