- Judge Jackson dismissed several SEC charges against Binance, including key claims, but upheld others targeting its holding company and former CEO.
- The SEC initially filed 13 charges against Binance, including operating unregistered exchanges and misleading information on trading controls.
- The ruling refines the litigation’s focus, potentially setting a precedent for future digital asset regulation, influencing the crypto market’s future.
The ongoing lawsuit between Binance and the Securities and Exchange Commission (SEC) reached a significant turning point on June 28 with a major ruling. Judge Amy Berman Jackson dismissed several charges against Binance, providing some temporary relief for Binance exchange.
Judge Jackson noted that factual complaints must be ‘plausible on their face’ to survive a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6). However, certain key allegations were upheld.
These include accusations against Zhao, the former CEO of Binance, and the holding company for Binance, alleging that Zhao served as a ‘control person.’ Furthermore, the legal arguments concerning Binance’s potential requirement to register under the Securities Exchange Act of 1934 were permitted to continue.
The SEC initially filed 13 charges against Binance and its affiliated entities. The allegations included running unregistered exchanges, broker-dealers, and clearing agencies. They were also accused of providing misleading information about trading controls and engaging in unauthorized securities sales.
The dismissal of certain charges does not end the case. However, it narrows the scope of the litigation. The court filings highlight the complex nature of the case and they may establish a precedent for future regulation of digital assets.
Judge Jackson’s decision is similar to one made in the Ripple case, where Judge Analissa Torres rejected the SEC’s argument that secondary token sales constituted securities under the Howey Test.
The recent court decision, which dismissed some charges, has given Binance a short victory. The lawsuit continues to remain complex and crucial due to the remaining allegations. The final outcome will be critical to the regulatory future of digital assets.
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