{"id":333902,"date":"2024-06-29T10:16:55","date_gmt":"2024-06-29T04:46:55","guid":{"rendered":"https:\/\/dripp.zone\/news\/binances-bnb-sales-dont-qualify-as-securities-judge-dismisses-secs-claims-crypto-news\/"},"modified":"2024-06-29T10:20:57","modified_gmt":"2024-06-29T04:50:57","slug":"binances-bnb-sales-dont-qualify-as-securities-judge-dismisses-secs-claims-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/binances-bnb-sales-dont-qualify-as-securities-judge-dismisses-secs-claims-crypto-news\/","title":{"rendered":"Binance\u2019s BNB Sales Don\u2019t Qualify As Securities, Judge Dismisses SEC\u2019s Claims – Crypto News"},"content":{"rendered":"

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In a big win for Binance and the crypto community, Judge Amy Berman Jackson has dismissed the SEC\u2019s claim that the secondary sales of Binance\u2019s BNB coins qualify as securities under the Howey Test. Judge Jackson cited a similar decision from Judge Analissa Torres in the Ripple case stating that it is essential to weigh the economic reality of the token transaction while applying the Howey Test.<\/p>\n

Binance\u2019s BNB Tokens Are Not Securities<\/h3>\n

Adding further to her decision, Judge Jackson added that the government\u2019s reliance on the assertion that \u201cthe crypto assets are the embodiment of the investment contract,\u201d in addition to the arguments about the technology\u2019s nature, the independence of the platform, and the performance of every token, is insufficient to classify that secondary sale of the BNB Coin<\/a> constitute as investment contracts.<\/p>\n

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Similarly, the Judge Jackson also dismissed SEC\u2019s claims over the sale of Binance USD stablecoin (BUSD). She also\u00a0dismissed the SEC\u2019s claims related to Binance\u2019s passive income feature, \u201cSimple Earn.\u201d<\/p>\n

Interestingly, Judge Jackson also noted that the agreement is also inconsistent with the government\u2019s primary theory since filing the action which states \u201cWe aren\u2019t saying that the coins are securities \u2013 we are talking about investment contracts.\u201d<\/p>\n

Judge Jackson further stated that a token\u2019s nature can evolve over time, suggesting that if the token qualifies as a security initially, it is not necssary that it will always remain a security.<\/p>\n

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This distinction undermines the SEC\u2019s position while leading a significant ruling in the ongoing debate over the classification of the digital assets.<\/p>\n

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Also Read: Binance Revamps Fee Structure, Tightens VIP Broker Perks<\/a><\/p>\n

SEC\u2019s Case on BNB Staking to Continue<\/h3>\n

Although it\u2019s been a big win Binance, it\u2019s not a clean sweep as Judge Jackson stated that the U.S. Securities and Exchange Commission (SEC) can continue to pursue claims associated with Binance\u2019s BNB staking program, the anti-fraud violations, as well as sale of BNB after the ICO, notes the court filing<\/a>.<\/p>\n

Furthermore, the SEC will also be able to continue on its claims that Binance founder Changpeng \u2018CZ\u2019 Zhao acted as the \u201ccontrol person\u201d of the company. Thus, the SEC can asset that it was mandatory for Binance to register under the Exchange Act.<\/p>\n

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The Binance vs SEC<\/a> lawsuit dates back to 2023 when Gary Gensler claimed that the exchange conducted the sale of BNB as unregistered securities and was illegally operating in the US.<\/p>\n

Binance founder CZ is currently serving the fourt month of his sentence for violating money laundering rules. Changpeng Zhao<\/a> has also shared his post prison plans with the Binance community.<\/p>\n

Also Read: Binance Cracks Down On Account Misuse<\/a><\/p>\n

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