In a significant turnaround for Binance, the U.S. District Court for the District of Columbia has dismissed substantial charges brought by the SEC against the cryptocurrency giant. The lawsuit, filed in June 2023 under the leadership of Gary Gensler, accused Binance of trading in unregistered securities and operating without legal authorization in the United States.

This scenario found parallels in a previous case involving Ripple. In July 2023, Judge Torres, sitting in another jurisdiction, concluded that Ripple’s XRP token transactions on secondary trading platforms did not constitute offers of investment contracts. This finding was crucial in rejecting the SEC’s claims that classified crypto tokens as investment contracts, thus shaping the verdict in favor of Binance.

Additionally, the court dismissed the SEC’s claims that Binance’s fiat-backed stablecoin BUSD was an investment contract. The ruling highlighted the lack of evidence that investors expected BUSD to appreciate due to Binance’s direct efforts. However, the company still faces legal challenges as the court ruled that some claims related to direct sales of BNB could proceed.

The Binance case, similar to Ripple, highlights the debate over the SEC’s regulatory approach to the nature of cryptocurrency transactions, rather than focusing on the tokens themselves. This decision represents a milestone for the cryptocurrency industry, setting a precedent that could limit future overreaching regulatory interventions by the SEC.

Disclaimer:

The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.

Source: https://portalcripto.com.br/vitoria-da-binance-contra-a-sec-resgata-confianca-da-ripple/



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