Judge Amy Berman Jackson, however, cited the Ripple ruling in rejecting the SEC’s argument that BNB is traded illegally on secondary markets. The nation’s securities commission has brought numerous lawsuits against cryptocurrency exchange Binance, and the company has not been able to persuade a US judge to dismiss them.
According to a court filing dated June 28, Judge Amy Berman Jackson said that claims concerning Binance’s staking programme, the sale of BNB following its initial coin offering, and anti-fraud infractions will go on. The securities regulator will also pursue its allegations that former Binance CEO Changpeng “CZ” Zhao behaved as a “control person” and that Binance had to register in accordance with the Exchange Act.
The Securities and Exchange Commission (SEC) did not, however, win all of their cases; in the end, Jackson dismissed all of the charges pertaining to sales of the Binance USD (BUSD) stablecoin and BNB secondary market.
Jackson’s decision to reject the SEC’s BNB secondary market sales claim was justified by citing Judge Analisa Torres’ judgement in the SEC’s action against Ripple. Eleanor Terrett of Fox Business reports that attorneys for Coinbase, Kraken, and Consensys are anticipated to “use this opinion to bolster their positions in their own litigations.” Jackson also refuted the SEC’s allegations regarding “Simple Earn,” a feature of Binance that generates passive revenue.Jackson set July 9 for the court appearance.
June 2023 saw the filing of a lawsuit by the Gary Gensler-led SEC against Binance, on the grounds that it was conducting illegal operations within the US and was offering the sale of unregistered securities.
Three months after the SEC case was filed, Binance and CZ filed a motion to dismiss it, claiming the SEC had overreached its legal jurisdiction. Revocation or denial of Binance’s ability to renew its money transmitter licence had occurred in seven U.S. states, namely Florida, Maine, Alaska, and North Carolina.
For breaking regulations against money laundering, CZ is presently serving a four-month prison sentence. Binance, which has over 200 million customers and $100 billion in assets under control, is still the biggest cryptocurrency exchange in the world despite the lawsuit.