Federal Judge Dismisses Some SEC Charges Against Binance, Allows Majority to Proceed; BNB Token Secondary Sales Excluded

Jun 29, 2024, 03:59 AM

A federal judge has dismissed some of the SEC's charges against Binance but allowed the majority of the case to proceed. District Judge Amy Berman Jackson ruled that secondary sales of Binance's BNB token do not qualify as securities under the Howey test, referencing a similar decision by Judge Analisa Torres in the Ripple case. The SEC's lawsuit against Binance and its U.S. affiliate alleges violations of federal securities laws by Binance and its CEO, Changpeng Zhao. The court's decision, which granted in part Binance's motion to dismiss, is seen as a significant development in the ongoing regulatory scrutiny of digital asset exchanges.