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In a pivotal ruling for the cryptocurrency sector, a U.S. federal court determined that BNB and BUSD tokens do not constitute investment contracts, and their secondary sales are not classified as securities transactions.
Presided over by Judge Amy Berman Jackson, the U.S. District Court for the District of Columbia dismissed several lawsuits initiated by the Securities and Exchange Commission (SEC) against Binance.US. The court specifically concluded that BNB is not a security and that transactions involving this token do not fall under the SEC’s regulatory authority.
Judge Berman Jackson remarked that the SEC did not present adequate evidence that buyers in the secondary market purchased BNB with the expectation of profit, which is a fundamental criterion of the Howey Test for identifying an investment contract. The judge also reproached the SEC for attempting to mislead the court, overlooking established precedents.
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The court also considered BUSD, indicating that it cannot be classified as a security since transactions involving it do not qualify as investment contracts. The presiding judge highlighted that the federal court relied on the opinion of the U.S. Department of Justice, which does not consider stablecoins as securities.
Consequently, this ruling establishes a substantial precedent for the broader cryptocurrency industry, affirming that cryptocurrencies are not securities and do not fall within the SEC’s jurisdiction. Essentially, for the regulator to assert its authority, it must now base its arguments on the specifics of each individual transaction, rather than solely on the issuance of cryptocurrencies.
While rejecting the SEC’s assertions about BNB, the court did not entirely dismiss the regulator’s case against Binance.US. The court is open to hearing the SEC’s arguments regarding the direct sales of BNB, which the SEC deems as securities transactions. The next court session concerning this issue is set for July 9. Representatives from Binance.US indicated their readiness for an extended legal battle.
In the wake of the FTX collapse, the SEC intensified its scrutiny of cryptocurrency exchanges, filing lawsuits against Binance, Coinbase, Kraken, and others.
Сообщение U.S. Court Doesn’t Recognize BNB and BUSD as Securities появились сначала на CoinsPaid Media.
