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A United States judge has declined to dismiss several claims brought against crypto exchange Binance by the Securities and Exchange Commission (SEC).

The case was filed in June 2023 by the SEC chairman Gary Gensler who accused Binance of offering securities without registering them and operating in the United States without authorization.

In a June 28 court filing, Judge Jacksons decision allowed some claims to proceed to trial while dismissing others. Jackson permitted the SEC to continue with claims related to Binances BNB staking program, anti-fraud violations, and the sale of BNB coins following its ICO.

The SEC also proved its allegations that Changpeng CZ Zhao, the founder of Binance, was a control person and the allegations that Binance should have registered under the Exchange Act.

However, Judge Jackson dismissed the allegations related to the secondary market sale of Binances BNB tokens, relying on a similar decision of the SEC in the Ripple case. She also dismissed suggestions concerning the Binance USD (BUSD) stablecoin and the exchanges Simple Earn passive income tool.

The decision is a major step in the legal battle over the status of virtual property. This is in line with the previous judicial decisions that have emphasized the need to appreciate the economic aspect of token sales under the Howey Test.

Nevertheless, Binance has faced legal problems and is still the biggest exchange for cryptocurrencies with more than 200 million users and assets of over $100 billion. The case remains in the limelight as it moves through the legal process with a court session set for July 9th.

This ruling by Jackson is somewhat favorable for Binance and the SEC at the same time, which has implications for the regulation of cryptocurrencies in the United States.

Also Read: Binance Steps Up Compliance Efforts Against Account Misuse

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US Judge Refuses to Dismiss Claims against Binance - Crypto Times

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The US Securities and Exchange Commission (SEC) lost its bid to classify sales of BNB, Binances native token, on secondary markets, and the Binance USD (BUSD) stablecoin as securities, according to a court filing signed by Judge Amy Berman Jackson on June 28.

The court referenced Judge Analisa Torres 2023 ruling in the SEC vs. Ripple Labs case to dismiss the secondary BNB sales claim. It stated that determining whether a secondary market sale is a sale of an investment contract depends on the totality of the circumstances and the economic reality of each specific transaction.

According to the filing, the SECs contention was based on the idea that if BNB was initially sold as an investment contract, any subsequent token sale would also be considered a sale of a security.

However, the court stated that this assertion does not hold, as it does not consider each secondary transactions specific details and context. In other words, just because BNB tokens were initially sold as investment contracts does not mean they remain securities throughout their lifecycle.

The court also highlighted inconsistencies in the SECs stance and noted that more facts are needed to plausibly allege an expectation of profits from secondary sales under the Howey test.

Scott Johnsson, Van Buren Capitals general partner, called the ruling a big loss for the SEC.

James MetaLawMan Murphy, a crypto-focused attorney, also celebrated the decision, calling it a win for the greater crypto industry.

The courts dismissal of the SECs argument about BNB secondary sales could influence other cases where crypto exchanges like Kraken and Coinbase are involved, as they face similar charges from the SEC for trading crypto assets considered unregistered securities.

While the court dismissed the SECs secondary market sales claim, it mostly sided with the SEC in its lawsuit against Binance.

As noted, the SEC can continue investigating Binances staking program, the sale of BNB tokens after their initial coin offering (ICO), and potential anti-fraud violations.

The court will also consider the SECs claims that Binances former CEO, Changpeng Zhao, significantly influenced Binance and that Binance should have registered as an exchange.

CZ is currently serving a separate sentence for violating money laundering laws.

The SEC vs. Binance lawsuit started in June last year when the securities regulator sued Binance and its founder, Changpeng Zhao, alleging that Binance was operating illegally in the US by offering the sale of unregistered securities.

About three months later, Binance filed a motion to dismiss the SEC lawsuit, arguing that the SEC had exceeded its legal authority.

Following the latest court order, the next court hearing is scheduled for July 9.

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SEC loses bid to classify BNB secondary sales as securities - Crypto Briefing

Binance has announced an update to the collateral ratios for several assets (PEPE, WIF, LISTA, IO, ZRO, ZK and NOT) under its Portfolio Margin program, set to take effect on June 28, 2024, at 06:00 (UTC). The changes are expected to be completed within approximately one hour, according to Binance.

The update to the collateral ratios will directly impact the Unified Maintenance Margin Ratio (uniMMR) for users. Binance advises users to closely monitor their uniMMR to avoid potential liquidation or losses resulting from the changes in collateral ratios. The update is part of Binance's ongoing efforts to optimize and maintain the security of its trading environment.

Users should be aware that discrepancies may exist in translated versions of the announcement. Binance recommends referring to the original English version for the most accurate and up-to-date information.

Changes in collateral ratios can have significant implications for users engaged in margin trading. Adjusting the collateral ratio affects the amount of collateral required to maintain open positions, thereby influencing the likelihood of margin calls and liquidations. Traders must stay vigilant and prepared for any adjustments to their accounts.

The announcement also includes a disclaimer highlighting the inherent risks associated with digital asset trading. Binance emphasizes that prices can be volatile, and users are responsible for their own investment decisions. The platform advises traders to make independent assessments of the risks and benefits before engaging in futures trading.

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Influencing PEPE, WIF, LISTA, IO, ZRO, ZK and NOT, Binance to Update Collateral Ratios for Multiple Assets Under ... - Blockchain News

Binances current legal turmoil with the Nigerian government has drawn the attention of the nations blockchain advocacy group, which has called for a balanced resolution.

The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) represents the nations blockchain sector. The group has raised concerns about the nations international reputation.

In their statement, BICCoN urged for a balanced approach while keeping in mind the nations duty to protect national interests, such as economic stability and regulatory adherence. The group vouched for a resolution that promotes trust and confidence in the process.

As such, it advocated for an approach that encourages collaboration with global partners and stakeholders.

The group warned that continued delays in resolving the matter could harm the nations blockchain industry.

The detention of Binance executive Tigran Gambaryan has begun to have ripple effects that threaten Nigerias ability to maintain and consolidate crucial collaborations with international partners.

Further, the recent events have also led to a chilling effect on investment. The group has flagged a noticeable decline in foreign investments, which is deemed detrimental to the countrys economic growth.

Moreover, BICCoN also stressed that the situation could lead to a withdrawal of support from international partners. This would leave the nations local regulators and law enforcement without the necessary tools and expertise to effectively regulate the industry.

Nigerian regulators stand to gain immensely from continued access to advanced tools and resources provided by international blockchain entities, the statement said.

As such, the group is concerned that it would hamper the ability of Nigerian authorities to combat financial crimes and ensure a secure environment for all stakeholders.

The statement also acknowledged Gambaryans expertise, claiming that his expertise would have served as an invaluable asset to aid Nigerian regulators in their enforcement efforts.

Instead, his detention undermines the potential for such collaborative efforts, BICCoN added.

BICCoN recommends constructive dialogue with Binance and other relevant stakeholders to work towards a mutually beneficial solution. On top of this, the group also stressed that all processes should be transparent, fair, and adhere to international best practices.

Ultimately, BICCoN concluded that the balanced approach could help resolve the recent issues fairly while also maintaining relations that would help Nigeria create a supportive environment for the nations blockchain sector.

Gambaryan and Binance regional manager Nadeem Anjarwalla were detained on Feb. 26. The duo had traveled to Nigeria to help Binances defense against tax evasion and money laundering charges.

Gambaryan was detained after two meetings with Nigerian authorities. Allegedly, the meetings started as professional but had turned hostile.

His continued detention has stirred political waters, with U.S. lawmakers and officials urging the U.S. presidents intervention.

Most recently, Arkansas Republican Rep. French Hill advocated for the release of Gambaryan during a FOX Business interview. Hill claimed the Binance executive was caught in a Nigerian political fight.

However, Nigerian regulators havent been too responsive despite the escalating situation. On Jun. 6, Nigerian Minister of Information Mohammed Idris defended Gambarayans trial despite several claims that he was being held in harsh conditions while suffering from malaria.

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Nigerian blockchain advocacy group warns of repercussions from Binance dispute - crypto.news

Leading crypto exchange Binance announces plans to delist a trading pair associated with dog-themed token Shiba Inu (SHIB).

According to a blog post today, Binance will remove the SHIB/TUSD trading pair effective on June 28 at 03:00 AM (UTC).

The decision aligns with the exchanges periodic reviews of all listed spot trading pairs to guarantee users protection. Following these reviews, the exchange usually delists trading pairs with low liquidity and volume. Consequently, it has decided to delist the SHIB/TUSD pair due to its low volume or liquidity.

Data from Binance shows that the SHIB/TUSD pair has a minimal 24-hour trading volume of $17,577, which equates to over 992 million SHIB tokens.

Binance noted that it plans to terminate spot trading bot services for SHIB/TUSD on June 28. Hence, users are advised to update or cancel their trading bot for SHIB/TUSD to avoid incurring potential losses.

It bears mentioning that this is not the first time Binance has removed a Shiba Inu trading pair. Last year, the top exchange removed the SHIB/BUSD margin pair, as part of plans to discontinue support for the BUSD stablecoin.

Despite the upcoming removal of SHIB/TUSD, Binance will continue to support eight other Shiba Inu trading pairs, such as SHIB/USDT, SHIB/FDUSD, SHIB/USDC, SHIB/EUR, SHIB/TRY, SHIB/BRL, SHIB/DOGE, and SHIB/JPY. This suggests that Binance users can still trade SHIB on the aforementioned pairs.

Besides SHIB/TUSD, Binance also revealed plans to delist other crypto spot trading pairs on June 28 at 03:00 AM (UTC). The affected pairs include BLUR/FDUSD, MEME/ETH, LINK/TUSD, OSMO/BTC, NFP/BNB, and METIS/FDUSD.

Meanwhile, the decision did not have a negative impact on SHIBs price action. At press time, SHIB was changing hands at $0.00001750, with a 24-hour increase of 0.63%. The token, which was plagued by the recent market downturn, currently boasts a trading volume of $355.51 million.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basics opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Binance to Remove This Shiba Inu Spot Trading Pair - The Crypto Basic