- US court rules crypto tokens and secondary transactions aren’t securities.
- Court dismisses SEC’s securities claims against Binance.
- Ruling challenges SEC’s approach to crypto regulation
The United States District Court for the District of Columbia has dismissed significant SEC claims against Binance. The court rejected the notion that crypto tokens and certain secondary market transactions qualify as securities. This decision significantly impacts the SEC’s regulatory approach toward the cryptocurrency sector.
Judge Amy Berman Jackson ruled that the SEC had not adequately alleged investment contracts underpinning BNB token sales in secondary markets with their allegations. This goes along with the ruling that the SEC failed to successfully plead the existence of a contract involving the BUSD stablecoin and did not correctly characterize it as an investment contract.
Stablecoin and Secondary Market Implications
The court said that BUSD does not even possibly represent security because it is backed by fiat and stable in value, which offers no investment expectations. This aligns with earlier findings by several U.S. regulators, which have not treated similar stablecoins as securities.
Additionally, the dismissal concerning secondary market sales of BNB points to a more nuanced understanding of cryptocurrency transactions, beyond mere investment speculation.
Read CRYPTONEWSLAND on
google news
Ongoing Legal Challenges and Market Impact
While the court dismissed several of the SEC’s claims, it allowed others to proceed, maintaining a balanced judicial approach at this preliminary stage. Binance must continue to defend against the remaining allegations, proving that certain transactions do not meet the criteria of securities transactions.
This case marks a critical juncture for the SEC’s engagement with the crypto industry and may influence future regulatory frameworks. The ruling is also part of a broader call for clarity and consistency in cryptocurrency regulation, urging measures for supporting innovation that ensure the integrity of the markets.
Read Also:
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
