Court Decides BNB Sales and Cryptocurrencies Sold by Binance Are Not Considered Securities in SEC Case

A federal court in the United States has ruled that cryptocurrencies, including the BNB token, and their secondary sales do not fall under securities regulations, marking a significant victory for the crypto industry. Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia dismissed multiple claims made by the U.S. Securities and Exchange Commission (SEC), according to an announcement by Binance on July 2. The SEC has been cracking down on crypto exchanges since the collapse of FTX, which has faced criticism for potentially hindering innovation. This ruling could have positive implications for other ongoing legal battles, such as the SEC vs. Ripple lawsuit. Judge Jackson’s ruling clarified that cryptocurrency tokens themselves are not securities, meaning they do not fall under the jurisdiction of the SEC. Instead, the focus should be on the circumstances of each token sale. This ruling provides relief for investors, as the SEC previously considered 68 cryptocurrencies, including BNB, as securities. In June 2023, the SEC sued Binance and Coinbase for alleged securities violations. Despite no evidence of misappropriation, Binance was charged with violating Anti-Money Laundering laws and settled to pay a record-breaking $4.3 billion fine. The next court hearing for the Binance vs. SEC case is scheduled for July 9, and Binance’s U.S. branch has expressed readiness for an extended period of legal discovery.