As a researcher with a background in law and experience following the cryptocurrency industry, I find the recent ruling in the SEC vs. Binance case to be a significant development, especially given its connection to the Ripple lawsuit. The decision made by Judge Amy Berman Jackson not only dismisses certain claims against Binance but also relies heavily on reasoning from the Ripple case.
The buzz within the cryptocurrency world is intense as the ongoing legal battle between Binance and the U.S. Securities and Exchange Commission (SEC) unfolds. The latest court decision in this case bears strong resemblances to the Ripple-SEC lawsuit, sparking significant reactions.
Metalawman, a recognized legal authority with the moniker, commented on the judgment, pointing out the substantial reliance of Judge Amy Berman Jackson on the reasoning employed by Judge Analisa Torres in the Ripple case.
In the SEC versus Binance case, Judge Jackson leans considerably on Judge Torres’ ruling in Ripple and dismisses the SEC’s allegations concerning secondary market transactions. The complaint fails to provide enough details for a convincing assumption that specific sales transacted on the secondary market were lawless.
— MetaLawMan (@MetaLawMan) June 29, 2024
In his decision, the judge referred back to Judge Analisa Torres’ ruling from 2023 in the Ripple case when justifying his dismissal of Binance’s secondary BNB sales claim.
In her critique of the SEC’s stance, Judge Jackson pointed out that the agency had not established a clear and distinct criterion for distinguishing between securities tokens and non-securities tokens.
Specifics of ruling
Approximately a year ago, the Securities and Exchange Commission (SEC) brought charges against Binance and its ex-CEO, Changpeng “CZ” Zhao. The SEC accused them of mishandling client funds, deceiving investors and regulators, and violating securities regulations. However, Binance and Zhao have disputed these allegations and requested the case to be thrown out.
Among the 13 counts under consideration, 10 will progress in full, while two will be partly handled, and one count will be dropped. This discarded count revolves around the sales of the Busd stablecoin. Additionally, a part of another count dealing with Bnb token sales, which is linked to the Binance ecosystem, was also expunged. The dropped portion pertains to secondary transactions of Bnb carried out by entities other than Binance.
As a researcher examining this case, I came across an accusation that the investment opportunity known as Simple Earn, where individuals could lend tokens and receive returns in the form of interest, was illegal. However, after further investigation, this specific allegation did not hold up and was subsequently dismissed. The remaining charges related to this matter will continue to be explored.
Community reaction
Although the court allowed certain claims to move forward, the broader crypto community remains optimistic about the outcome, particularly with respect to secondary market transactions.
As a legal analyst, I would interpret Metalawman’s perspective as follows: The SEC’s dismissal of claims against third-party sales in the crypto market is a triumph for our industry. This judgment, which draws parallels with the Ripple case, establishes an essential precedent.
According to Metalawman’s perspective, the ruling reinforces Coinbase’s argument for an early appeal of Judge Failla’s decision due to the conflicting views among district courts regarding the classification of digital asset tokens traded on secondary markets as securities.
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2024-06-30 14:18