Binance US is facing a legal showdown with the Securities and Exchange Commission (SEC) after a judge ruled that the SEC’s lawsuit will continue. However, Binance remains confident in its case, as the judge dismissed several of the SEC’s key claims.
Binance’s Preparations
Binance US, the American branch of the crypto exchange, is preparing to defend itself against the SEC. The exchange has emphasized its compliance with US regulations and its commitment to customer safety and security. Binance has also criticized the SEC’s “regulation by enforcement” approach and lack of clear guidance for the crypto industry.
Partial Victory for Binance
In June 2023, the SEC filed a lawsuit against Binance US, alleging that it had offered unregistered securities and operated illegally. Binance filed a motion to dismiss the lawsuit, arguing that the SEC had exceeded its authority.
On Friday, Judge Amy Berman Jackson ruled against Binance’s attempt to dismiss most of the SEC’s claims. However, Binance achieved a partial victory when Judge Jackson rejected some of the regulator’s main claims. These included claims related to secondary market sales of BNB tokens, the classification of Binance USD (BUSD) as an investment contract, and the assertion that crypto tokens themselves are securities.
SEC’s Authority Challenged
Binance considers the court’s ruling a setback for the SEC’s efforts to regulate the crypto industry through enforcement. The decision highlights the limits of the SEC’s authority over cryptocurrencies and recognizes the need for a more comprehensive approach.
While the lawsuit will proceed with claims related to Binance’s staking program and ICO sales, the judge’s dismissal of the SEC’s key claims is a significant development in the ongoing battle between regulators and the crypto industry.
