The cryptocurrency community is excited about the latest developments in the legal showdown between Binance and the United States Securities and Exchange Commission (SEC). The recent ruling in the case is largely based on Ripple and the SEC’s lawsuit, which has sparked reactions.
The cryptocurrency community is abuzz with the latest developments in the legal showdown between Binance and the U.S. Securities and Exchange Commission (SEC). The recent ruling in the case is largely based on the lawsuit between Ripple and the SEC, which sparked backlash.
Legal expert who goes by the name “Metalawman” on X reacted to the ruling, 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 in granting Binance’s motion to dismiss the BNB sales secondary claim.
Criticizing the SEC’s approach, Judge Jackson said the agency failed to provide a “clear differentiating principle” to distinguish between tokens that are considered securities and those that are not.
Particularities of the sentence
A year ago, the SEC sued Binance and its former CEO Changpeng “CZ” Zhao for misappropriating customer funds, misleading investors and regulators, and violating securities rules. The defendants disputed the allegations and asked for the case to be dismissed.
Of the 13 charges, 10 will be processed in full, two will be processed in part, and one has been dismissed. The dismissed charge relates to sales of the BUSD stablecoin; part of one charge relating to sales of BNB, a token linked to the Binance ecosystem, was also dismissed. The dismissed portion relates to secondary sales of BNB by parties other than Binance.
Tomiwabold OlajideAn allegation of illegality related to an offering called Simple Earn, which allows investors to lend tokens and earn interest, was also dismissed, though the rest of the related count will continue.
Community reaction
Even though the judge allowed some claims to proceed, the crypto community still views the ruling as positive, especially as it relates to secondary market sales.
Tomiwabold OlajideAccording to Metalawman, the dismissal of the SEC’s claims related to secondary market sales by third parties is a victory for the cryptocurrency industry as a whole. The fact that the ruling is based on the Ripple case also sets an important precedent.
Metalawman also believes the decision supports Coinbase’s claim that an early appeal of Judge Failla’s decision is necessary, given that district courts disagree on the fundamental question of whether digital asset tokens sold on secondary markets They constitute values.
