The post Victory for Binance: Judge Rejects SEC’s Securities Claim on BNB Sales appeared on BitcoinEthereumNews.com.

A U.S. court dismissed some SEC claims against Binance related to BNB. Secondary sales of BNB by parties other than Binance were ruled not to be unregistered securities offerings. In a recent ruling, the U.S. District Court for the District of Columbia has dismissed several claims in the ongoing lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against Binance and its affiliates. The court’s ruling clarified the status of BNB secondary sales, dismissing the SEC’s allegations regarding these transactions.  According to the decision, the SEC failed to prove adequately that secondary BNB sales amounted to unregistered securities offerings under the Securities Act. The court also pointed out that these sales, made by entities other than Binance, did not have the characteristics of securities transactions. 🚨 Judge dismisses SEC’s claim that Binance’s BNB secondary sales, under CEO Changpeng Zhao’s leadership, qualify as securities under Howey Test, citing economic reality of token transactions. Victory for Binance amid ongoing regulatory scrutiny. #Binance #CZ #Crypto #SEC pic.twitter.com/fd5de8ED49 — Collin Brown (@CollinBrownXRP) June 29, 2024   This aspect of the ruling is important in the case as it pins the case on the ICO and the ongoing direct sales of BNB by Binance. The ruling issued by the court infers that the SEC needs to present better evidence in the effort to make claims concerning the secondary market in the cryptocurrency industry.  The court also addressed the SEC’s allegations concerning Binance USD (BUSD), a stablecoin issued by Binance. The SEC had claimed that Binance violated Sections 5(a) and 5(c) of the Securities Act by offering and selling BUSD without a proper registration statement. Comparison to the Ripple Case The Binance case can be compared to the SEC’s lawsuit against Ripple, especially in terms of how the courts have treated the status of digital…

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Filed under: News - @ July 2, 2024 3:20 am