In a significant legal development, a U.S. court has allowed most claims against Binance by the Securities and Exchange Commission (SEC) to proceed. The SEC alleges that Binance’s staking program, post-ICO sales of BNB, and anti-fraud violations are illegal. The claims also extend to former CEO Changpeng “CZ” Zhao, implicating him as a control person responsible for Binance’s actions.
Judge Amy Berman Jackson dismissed the SEC's allegations concerning secondary market sales of BNB and all transactions involving the Binance USD (BUSD) stablecoin, citing a precedent from the SEC’s case against Ripple. This decision marks a partial victory for Binance but underscores the ongoing legal scrutiny it faces.
The SEC, led by Gary Gensler, initially filed the lawsuit in June 2023, accusing Binance of operating illegally and offering unregistered securities. Despite efforts to dismiss the case, Binance and Zhao must now prepare for the legal battles ahead. A court hearing is scheduled for July 9.
The outcome of this case could have far-reaching implications for the cryptocurrency industry, particularly concerning regulatory practices and the operation of major exchanges like Binance. The market's reaction and the ongoing developments will be closely watched by both industry insiders and regulators.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
