SEC Accuses Binance of Offering Unregistered Broker Services

U.S. District Court Judge Amy Berman Jackson has ruled that the SEC’s lawsuit against Binance can proceed, though some charges have been dismissed. The SEC alleges that Binance offered unregistered broker, trading, and clearing services for digital asset securities in the U.S.

Judge Jackson upheld charges related to Binance’s initial coin offering (ICO), ongoing sales for BNB, BNB Vault, and staking services, as well as accusations of failure to register and fraud. However, she dismissed charges concerning secondary sales of BNB and Simple Earn.

The decision underscores the evolving nature of token classifications. A token initially considered part of an investment contract may not retain that classification indefinitely. Cody Carbone, chief policy officer at the Digital Chamber, emphasized the importance of distinguishing between tokens functioning as securities and those that do not.

SEC vs Binance

Judge Jackson criticized the SEC’s shifting regulatory stance and the lack of a comprehensive framework for the crypto industry, highlighting the ongoing debate over the SEC’s approach to crypto regulation. This case against Binance highlights the complexities and uncertainties in applying existing securities laws to the rapidly evolving digital asset landscape.

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