A U.S. federal judge has ruled in favor of the Securities and Exchange Commission (SEC) in its lawsuit against Binance, Binance.US, and Changpeng Zhao. The judge dismissed the SEC's claims against Binance related to secondary sales of BNB and Simple Earn, but allowed other charges, including initial coin offering, ongoing sales, BNB Vault, staking services, failure to register, and fraud, to proceed. The judge cited the economic reality of the tokens' transactions in her decision, aligning with the Supreme Court's interpretation of 'investment contracts.' The judge also rejected arguments that the SEC lacks authority to regulate crypto entities under the major questions doctrine, stating the crypto industry does not meet the criteria for applying this doctrine. This decision is significant as it reinforces the SEC's stance on the regulation of cryptocurrencies. It is a critical step in the SEC's larger mission to regulate the crypto industry, with similar charges being filed against major crypto players like Coinbase, Kraken, Consensys, and MetaMask.
Key Points:
A U.S. judge allowed most of the SEC's lawsuit against Binance, Binance.US, and Changpeng Zhao to proceed, dismissing only the charges related to secondary BNB sales and Simple Earn.
The SEC's claims regarding initial coin offering, ongoing sales, BNB Vault, staking services, failure to register, and fraud were allowed to proceed.
The judge cited the economic reality of the tokens' transactions, aligning with the Supreme Court's interpretation of 'investment contracts.'
The judge rejected the argument that the SEC lacks authority to regulate crypto entities under the major questions doctrine.
This decision is significant as it reinforces the SEC's stance on the regulation of cryptocurrencies.
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