The Web3 community is celebrating a major court victory against the U.S. Securities and Exchange Commission (SEC). This ruling impacts the SEC’s efforts to classify cryptocurrencies as securities.
Key Court Ruling
On June 28, Judge Amy Berman Jackson of the District Court for the District of Columbia dismissed SEC charges against Binance. The SEC had alleged that secondary sales of Binance’s BNB token and BUSD stablecoin were unregistered digital asset securities. Charges related to Binance’s Simple Earn product were also dismissed.
Judge’s Perspective
Judge Jackson clarified that the SEC’s view that the token itself is an investment contract muddied the issues. She emphasized that this case does not determine whether crypto assets are securities.
Reference to Ripple’s XRP Case
The judge cited an October 2023 ruling on Ripple’s XRP. This ruling stated that digital tokens alone do not constitute securities investment contracts, even if distributed through such contracts. Jackson noted that the SEC’s stance was inconsistent with Supreme Court rules.
Ongoing Charges Against Binance
Despite this victory, the court allowed many of the SEC’s charges against Binance to proceed. These include allegations that Binance’s initial coin offering for Binance Coin (BNB), ongoing BNB sales, staking services, and BNB Vault products were unlicensed securities offerings.
Binance also faces charges for allegedly failing to restrict U.S. investors, failing to register as an exchange, broker, or clearing agency, and misleading customers about market surveillance controls.
Market Reaction
The price of BNB is up 1% over the past 24 hours, reflecting positive market sentiment following the ruling.
