Binance Celebrates as Court Throws Out SECs Major Allegations in Crypto Market

Key claims by the SEC that Binance sold unregistered securities were dismissed by a US court, echoing a similar ruling in the SEC vs. Ripple case.
Both court decisions indicate that the SEC cannot categorize all crypto tokens as securities.
This ruling, along with Donald Trump’s campaign accepting crypto donations, could lead to a more favorable regulatory environment for cryptocurrency in the US.
Is the SEC’s control over crypto weakening? In a significant setback for the regulatory body, the US District Court for the District of Columbia has just thrown out crucial parts of their lawsuit against Binance. The SEC accused the world’s largest crypto exchange of selling unregistered securities, potentially affecting how millions of Americans trade digital assets.
But could this be a turning point for the crypto industry, alongside Ripple’s major progress? Read on.
Influence of the Ripple Ruling
The court’s decision was heavily influenced by Judge Torres’ ruling in the SEC vs. Ripple case. In July 2023, Judge Torres determined that the sale of XRP tokens by Ripple on secondary trading platforms did not constitute investment contracts. This reasoning was crucial in dismissing the SEC’s assertion that crypto tokens are inherently investment contracts. Both cases highlighted the importance of the nature of transactions over the tokens themselves.
BUSD: Not an Investment Contract
Additionally, the court rejected the SEC’s claim that Binance’s fiat-backed stablecoin, BUSD, is an investment contract. The court found no evidence suggesting that buyers expected value appreciation due to Binance’s efforts.
Impact on Crypto
Despite this win, Binance isn’t entirely out of legal jeopardy. The court allowed some of the SEC’s claims to proceed, requiring the SEC to prove that direct sales of Binance’s native token, BNB, could be considered securities transactions.
The similarities between the SEC vs. Binance and SEC vs. Ripple cases are significant, as both challenge the SEC’s broad regulatory approach, focusing on transaction types rather than the tokens themselves. This ruling is a critical victory for the crypto industry, setting a precedent that may limit the SEC’s regulatory overreach.
Politics Opens Up
Donald Trump’s campaign has started accepting major cryptocurrencies such as Bitcoin and Ether as donations. Additionally, the campaign is accepting popular low-value tokens known as meme coins, including Shiba Inu and Dogecoin. This move could strengthen the position of cryptocurrencies in the US and promote a more supportive regulatory environment.
Also Read :
Ripple vs. SEC: Ripple Fights Back with a Filing Of Notice of Supplemental Authority
Ready for a crypto boom! Get ready, because this ruling could be a game-changer.