Archive for the ‘Binance’ Category
XRP News Today: Did the Binance Ruling Sink SEC Plans to Appeal? – FX Empire
The court order stated,
The court is inclined to agree with the approach of the court in Ripple Labs, since the it-is-what-it-is approach of the SEC appears to be inconsistent with the clear Supreme Court directives [].
Fox Business Journalist Eleanor Terrett highlighted a crucial opinion from the court ruling that stated,
[] the governments reliance on the assertion that the crypto assets are the embodiment of the investment contract, and its argument at the hearing about the nature of the technology and the interdependence of the platform and the performance of every token, is not enough, standing alone, to bring secondary sales of BNB under the investment contract rubric.
How will this affect SEC plans to appeal against the Programmatic Sales of XRP ruling?
Investors await the court verdict on the penalty Ripple must pay for breaching US securities laws. The Binance ruling does not affect the pending Ripple case ruling. However, the Binance ruling could affect SEC plans to appeal against the Programmatic Sales of XRP ruling.
In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
The reference to the Programmatic Sales of XRP ruling could prove crucial, with Judge Jackson reinforcing Judge Torress ruling.
In July 2023, XRP surged to a high of $0.9327 as investors reacted to Judge Torress ruling. However, XRP returned to sub-$0.50 levels, weighed by market expectations of the SEC appealing against the ruling.
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XRP News Today: Did the Binance Ruling Sink SEC Plans to Appeal? - FX Empire
Judge Rules Majority of SEC Case Against Binance Can Proceed – CryptoPotato
On June 28, Amy Berman Jackson, a judge at the US District Court for the District of Columbia, ruled that most of the SECs lawsuit against Binance and its co-founder could go ahead.
The SEC sued Binance and Zhao in June 2023 for mishandling customer funds, misleading investors and regulators, and violating securities regulations.
The company contested the claims and asked for the case to be dismissed in September with Binance lawyers stating at the time that the SEC was trying to enlarge its jurisdiction globally to include transactions on foreign cryptocurrency platforms.
Judge Jackson ruled that out of 13 counts, 10 will proceed in full, two will partially proceed, and one will be dismissed, reported Bloomberg on June 29.
The dismissed count relates to sales of BUSD, the firms defunct stablecoin that was hit with regulatory action in February 2023 forcing issuer Paxos to stop minting them.
Part of a count concerning secondary sales of the exchanges native BNB token by parties other than Binance was also dismissed.
Additionally, an allegation about Binances Simple Earn program, which enables users to earn interest on crypto assets, was dismissed, but the rest of that count proceeds.
This lawsuit is separate from the $4.3 billion penalty Binance faced in November 2023 for violations of anti-money laundering and sanctions laws.
The SEC and chair Gary Gensler still maintain that most crypto assets are securities but a series of lawsuits to enforce this stance have failed to settle the question or classification of digital tokens.
BNB didnt react to the news and remained flat on the day, trading at $570 at the time of writing. Moreover, the asset has outperformed most altcoins in recent months, hitting an all-time high of $717 on June 6.
In related news, Ethereum software solutions provider ConsenSys hit back at the SEC on June 28 with a company statement which read:
This is just the latest example of its regulatory overreach a transparent attempt to redefine well-established legal standards and expand the SECs jurisdiction via lawsuit.
In its latest salvo against the crypto industry this week, the SEC accused ConsenSys of selling unregistered securities through its MetaMask staking service.
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Judge Rules Majority of SEC Case Against Binance Can Proceed - CryptoPotato
US Judge Allows Major Portion of SEC Lawsuit Against Binance and CZ to Proceed – Cryptonews
Last updated: June 29, 2024, 12:00 EDT | 2 min read
A United States court has ruled against cryptocurrency exchange Binances attempt to dismiss the majority of claims leveled against it by the countrys securities regulator, the Securities and Exchange Commission (SEC).
According to the court filing by Judge Amy Berman Jackson on June 28, claims related to Binances staking program, the sale of BNB tokens following its initial coin offering, and anti-fraud violations will proceed.
The court also upheld the SECs contention that former Binance CEO Changpeng CZ Zhao acted as a control person and that Binance was obligated to register under the Exchange Act.
However, the ruling wasnt a complete victory for the SEC.
Judge Jackson decided to dismiss claims relating to BNB secondary market sales and all sales associated with the Binance USD (BUSD) stablecoin.
In her decision, she referred to Judge Analisa Torres ruling in the SECs case against Ripple as supporting grounds for dismissing the SECs claim regarding BNB secondary market sales.
The courts decision came as a surprise to finance lawyer Scott Johnsson, who described it as a significant setback for the securities regulator.
Fox Business reporter Eleanor Terrett anticipates that lawyers representing Coinbase, Kraken, and Consensys will leverage this opinion to strengthen their positions in their respective litigations.
Judge Jackson also rejected the SECs claims concerning Binances passive income feature, Simple Earn.
A court hearing has been scheduled for July 9 to further address the matter.
The SEC, led by Gary Gensler, filed the lawsuit against Binance in June 2023, alleging that the exchange had offered the sale of unregistered securities and operated illegally within the United States.
Binance and CZ responded by filing a motion to dismiss the lawsuit approximately three months later, arguing that the SEC had exceeded its legal authority.
In addition to the lawsuit, Binance has faced challenges on the regulatory front.
Seven US states, including Alaska, Florida, Maine, and North Carolina, have either revoked or denied Binance the right to renew its money transmitter license.
Furthermore, CZ is currently serving a four-month prison sentence for violating money laundering laws.
Despite these legal hurdles, Binance continues to hold its position as the worlds largest cryptocurrency exchange, boasting over 200 million users and managing assets totaling $100 billion.
Just two years ago, in 2022, Binance reported a user base of around 130 million.
By 2023, the exchange had added 40 million more users, bringing the total count to 170 million.
Impressively, in the first half of 2024 alone, Binance has already added at least 30 million new users.
In May, the Financial Intelligence Unit of India (FIU-IND) revealed that Binance has successfully registered with the regulatory body, returning to the country after some regulatory hurdles.
Prior to that, the exchange announced that it had obtained a license from Dubais regulator, VARA, enabling the platform to cater to retail clients along with qualified and institutional ones.
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US Judge Allows Major Portion of SEC Lawsuit Against Binance and CZ to Proceed - Cryptonews