Binance Lawsuit: Court Allows Most SEC Claims

Binance Lawsuit Outcome: Court Greenlights Most SEC Claims, Market Impact Expected

Binance Lawsuit- In a recent court ruling, cryptocurrency exchange giant Binance encountered a significant legal setback in its ongoing battle with the U.S. Securities and Exchange Commission (SEC). Here’s what you need to know:

Key Court Rulings:

• Claims Upheld: Most claims by the SEC against Binance, including those related to its staking program, BNB initial coin offering, and anti-fraud violations, will proceed.
• CEO’s Role: The SEC’s assertion that former CEO Changpeng “CZ” Zhao acted as a “control person” for Binance was also upheld.
• Registration Obligation: The court ruled that Binance was obligated to register under the Exchange Act, a pivotal decision impacting its operations in the U.S.
• Claims Dismissed: However, claims regarding BNB secondary market sales and transactions involving the Binance USD (BUSD) stablecoin were dismissed, following a precedent set in a previous SEC case against Ripple.

Finance Lawyer Scott Johnsson Calls SEC Ruling a “Big Loss”

Finance lawyer Scott Johnsson expressed surprise, calling the ruling a “big loss” for the SEC. Analysts predict that this decision could influence similar cases involving other cryptocurrency exchanges like Coinbase, Kraken, and Consensys.

A court hearing is scheduled for July 9 to address remaining issues in the case, signaling continued legal challenges for Binance.

SEC Lawsuit Against Binance: Allegations and Market Dominance

The SEC, under Gary Gensler’s leadership, initiated the lawsuit against Binance in June 2023, alleging the sale of unregistered securities and illegal operations in the U.S.

Despite these legal hurdles, Binance maintains its position as the world’s largest cryptocurrency exchange, boasting over 200 million users and managing assets exceeding $100 billion.

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