July 14, 2024
Latest Cryptocurrency News

U.S. Court Rules Binance’s BNB Token Not SEC Securities

In a significant legal victory for the cryptocurrency industry, a U.S. federal court ruled that cryptocurrencies and secondary sales of the BNB token do not constitute securities offerings. Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia dismissed claims by the SEC that purchasers in secondary market sales expected profits, a crucial factor under the Howey test.

Impact on Crypto Regulation

The ruling marks a pivotal moment for Binance.US and the broader crypto sector, challenging the SEC’s regulatory approach. The SEC’s crackdown on crypto exchanges following FTX’s collapse has drawn criticism for potentially stifling innovation. The decision could influence other ongoing cases, including the SEC’s lawsuit against Ripple.

Industry and Investor Reactions

Investors and industry stakeholders welcomed the ruling, which clarifies that cryptocurrency tokens themselves are not inherently securities. The court emphasized evaluating the circumstances of each token sale rather than categorizing cryptocurrencies as securities. This distinction is crucial for regulatory compliance and investor clarity in the evolving crypto landscape.

The SEC’s classification of 68 cryptocurrencies, including BNB, as securities in June 2023 has been contentious. In the lawsuit against Binance and Coinbase, the SEC alleged violations that led to significant legal battles. Despite ongoing legal challenges, Binance remains resilient, preparing for upcoming court proceedings to address regulatory concerns.

The court’s decision provides relief to investors navigating regulatory uncertainties in the crypto market. It underscores the complexity of defining digital assets under existing securities laws. Thus, signaling potential shifts in regulatory oversight and market dynamics.

As the legal landscape evolves, stakeholders await further developments that could shape the future of cryptocurrency regulation in the United States.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

Related posts

Worldcoin Foundation Boosts Biometric Data Security

Bran Lopez

Southeast Asia Poised to Cement Status as Crypto, Blockchain, and AI Epicenter

Henry Clarke

ARK Invest’s Strategic Moves: A $210 Million Divestment from Coinbase

Henry Clarke

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.