Good News for Binance: Judge Dismisses SEC's Claims!

Binance has recently seen an extensive positive development. A US judge has thrown out one of the critical parts of a lawsuit against Binance. The Securities and Exchange Commission filed it.

The main point of the case was whether Binance’s BNB token fell under the security definition of the USA’s laws.

How the SEC vs. Binance Case Started?

In 2022, the Security and Exchange Commission sued Binance for violating its regulation. It was when it released unregistered security under the ICO of BNB in 2017. 

The SEC asserted that BNB worked like a stock. Bright sold profits from Binance’s potential operations to investors. 

Binance fought back, saying BNB wasn't a stock. They said people could use BNB to get lower fees when trading crypto and other perks. Binance workers believed BNB's value came from how useful it was. It was not from people hoping to make money off Binance's success.

Judge Says No to SEC's Claims!

Binance argued it differs from trading stocks when people buy and sell BNB among themselves. Judge Amy Berman Jackson agreed with this idea. She used the Howey Test to decide if BNB is a security when people trade it. 

This decision is like one made in another big crypto case against a company called Ripple Labs.

But the judge didn't throw out all the SEC's claims. She said the SEC can still go after Binance for other things. These include claims that Binance lied when it first sold BNB. Moreover, its staking service might break the rules. The SEC can still argue that Binance should have registered as a broker-dealer. 

What Does This Mean for People Who Use Crypto?

This decision is good for Binance and other crypto companies. It shows that courts are starting to think that not all cryptocurrencies should be treated like stocks under current laws. It could lead to new, precise rules for tokens that have a use beyond just making money.

But this doesn't end the case. Even though Binance won on this point, they still face other charges that could get them in trouble. Also, the SEC might try to bring back the claim that the judge threw out.

We Still Need Clearer Crypto Rules!

Even though this is good news, it does not mean crypto companies are free from government oversight. The SEC will try even harder to watch over crypto companies.

Many people who care about crypto will watch what happens next in the Binance case. How it ends could change much about how crypto is regulated and used in the United States.

Stay Up to Date on Cryptocurrency Rules!

Everyone should follow the latest changes in the market and cryptocurrency regulations. Investors and business entities should consider the legal environment and act accordingly.

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