Binance Returns to Court as US Judge Permits Major SEC Allegations Regarding Cryptocurrency Sales

Major Developments in SEC Lawsuit Against Binance

In a significant legal development, a U.S. court has allowed most of the claims by the Securities and Exchange Commission (SEC) against cryptocurrency exchange Binance to move forward. The ruling by Judge Amy Berman Jackson paves the way for a potentially landmark case that could set a precedent for the regulation of crypto exchanges in the U.S.

The court ruled in favor of the SEC on several key claims, including Binance’s staking program, the sale of its BNB token after its initial coin offering, and anti-fraud violations. The SEC’s assertion that former Binance CEO Changpeng ‘CZ’ Zhao acted as a “control person” and that Binance was required to register under the Exchange Act will also be heard in court.

However, the judge dismissed the SEC’s claims related to the secondary market sales of BNB and all sales concerning the Binance USD (BUSD) stablecoin, citing a previous ruling in the SEC’s case against Ripple.

The outcome of the lawsuit is eagerly anticipated, as it could have far-reaching implications for not only Binance but also for other crypto firms. The hearing on the case is scheduled for July 9.

Despite these legal challenges, Binance remains the largest cryptocurrency exchange globally, with over 200 million users and $100 billion in assets under management. However, the exchange has faced regulatory hurdles in some U.S. states, with several revoking or refusing to renew Binance’s money transmitter license. Meanwhile, CZ is serving a four-month prison sentence for violating money laundering laws.

The SEC’s aggressive stance on regulating digital tokens has been met with criticism from the industry, with some arguing that the regulator is overstepping its authority. The outcome of the Binance lawsuit may shed light on the future regulatory landscape for the crypto industry in the U.S.