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The cryptocurrency community is abuzz with the latest developments in the legal showdown between Binance and the United States Securities and Exchange Commission (SEC). The recent decision in this case draws heavily on the Ripple-SEC lawsuitstirring reactions.
Legal expert who goes by the name “Metalawman” on X reacted to the decision, noting that Judge Amy Berman Jackson’s decision relied significantly on the reasoning used by Judge Analisa Torres in the Ripple case.
The judge cited Judge Analisa Torres’ 2023 ruling in the Ripple lawsuit to grant Binance’s motion to deny the BNB secondary sale application.
Critical of the SEC’s approach, Justice Jackson said the agency failed to provide a “clear differentiating principle” to distinguish tokens that are considered securities from those that are not. .
Decision details
The SEC sued Binance and its former CEO Changpeng “CZ” Zhao a year ago for mismanaging customer funds, misleading investors and regulators, and violating securities rules. The defendants contested these claims and requested that the case be dismissed.
Out of 13 charges, 10 will be prosecuted in full, two partially and one was dismissed. The rejected count concerns sales of the stablecoin BUSD; part of a count linked to sales of BNB, a token linked to the Binance ecosystem, was also launched. The rejected part concerns secondary sales of BNB by parties other than Binance.
Related
An allegation of illegality involving an offering called Simple Earn, which allows investors to lend tokens and earn interest, was also dismissed, although the rest of the related tally continues.
Community reaction
Although the judge allowed some lawsuits, the crypto community still views the ruling as positive, especially regarding secondary market sales.
Related
According to Metalawman, the SEC’s dismissal of allegations regarding secondary market sales by third parties is a victory for the entire crypto industry. The fact that the decision is based on Ripple case also sets an important precedent.
Metalawman also believes the ruling supports Coinbase’s contention that a quick appeal of Judge Failla’s ruling is necessary, given that district courts disagree on the fundamental question of whether coin tokens digital assets sold on secondary markets constitute securities.