29 June 2024, 10:17 published Updated 29 June 2024, 14:03
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Binance Davasında Kritik Karar: O Altcoin Menkul Kıymet Değil!
A critical decision was made in the case filed against Binance by the US Securities and Exchange Commission (SEC). Judge Amy Berman Jackson rejected the SEC’s argument that secondary sales of BNB coins could qualify as securities under the Howey Test. This decision is considered a great victory for both Binance and the cryptocurrency community.
Critical development in the Binance case
There has been an important development for the cryptocurrency market and Binance. In the lawsuit filed against Binance by the U.S. Securities and Exchange Commission (SEC), Judge Amy Berman Jackson rejected the SEC’s argument that secondary sales of Binance’s BNB coins could qualify as securities under the Howey Test. This decision is considered a great victory for both Binance and the cryptocurrency community.
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In his decision, Judge Jackson stated that it is important to consider the economic reality of the token transaction when applying the Howey Test, citing a similar decision by Judge Analissa Torres in the Ripple case. Jackson ruled that the secondary sale of BNB Coin was insufficient to be classified as an investment contract, based on arguments regarding the nature of the technology, the independence of the platform, and the performance of each token, in addition to the government’s investment contract argument.
BUSD also came up
Similarly, Judge Jackson also rejected the SEC’s allegations regarding the sale of the Binance USD (BUSD) stablecoin and its allegations regarding Binance’s passive income feature “Simple Earn.” Interestingly, Judge Jackson also addressed the government’s underlying theory in filing the case. Referring to the government’s statement, “We are not saying that coins are securities, we are talking about investment contracts,” Jackson stated that the agreement was inconsistent.
![](https://kriptokoin.com/wp-content/uploads/2024/06/futuristic-digital-technology-interface-with-glowing-holographic-elements-data-streams-1200x673.jpg)
Judge Jackson also stated that the nature of a token can change over time, and even if it initially qualifies as a security, it may not always remain so. This distinction sets an important precedent while weakening the SEC’s position in the debate over the classification of crypto assets.
Not a “complete” victory
But it’s not a complete victory for Binance. Judge Jackson stated that the SEC may continue its lawsuits regarding Binance’s BNB staking program, fraud accusations, and BNB sales after the ICO. Additionally, the SEC will continue to have the right to argue that co-founder Changpeng Zhao (CZ) acted as having “actual control” of the company. This means they could argue that Binance is required to register under the Exchange Act.
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The SEC’s lawsuit against Binance dates back to 2023. The SEC alleged that Binance was selling BNB as an unregistered security and operating illegally in the United States. As we reported as Kriptokoin.com, Binance founder CZ is currently in the fourth month of his prison sentence for money laundering.
The impact of this decision on the cryptocurrency market is not yet clear. However, the fact that BNB Coin is not considered a security is seen as a positive development for Binance. On the other hand, the ongoing parts of the case and the accusations against CZ are still on the agenda. It will become clearer in the coming period how this case will reflect and shape the regulatory debates in the cryptocurrency market.
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Critical Decision in Binance Lawsuit: That Altcoin is Not a Security!