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Ripple ruling strengthens Binance in clash with SEC, cryptocurrency community reacts
Tom Wabold Olajide
The recent ruling in the case draws on the Ripple-SEC case, sparking reactions
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The cryptocurrency community is abuzz with the latest developments in the legal showdown between Binance and the U.S. Securities and Exchange Commission (SEC). The recent ruling in the case draws heavily on the Ripple-SEC Lawsuitprovoking reactions.
Legal expert who calls himself “Metalawman” on X he reacted to the ruling, noting that Judge Amy Berman Jackson’s decision relied significantly on the logic used by Judge Analisa Torres in the Ripple case.
The judge cited Judge Analisa Torres’ 2023 ruling in the Ripple case to grant Binance’s motion to deny BNB’s secondary sale request.
Critical of the SEC’s approach, Judge Jackson said the agency failed to provide a “clear principle of differentiation” to distinguish between tokens that are considered securities and those that are not.
Particularities of the sentence
A year ago, the SEC sued Binance and its former CEO Changpeng “CZ” Zhao for mismanaging customer funds, deceiving investors and regulators, and violating securities laws. The defendants disputed the allegations and asked for the case to be dismissed.
Of 13 counts, 10 will be tried fully, two partially and one has been dismissed. The archived count concerns sales of the BUSD stablecoin; Part of a tally relating to sales of BNB, a token linked to the Binance ecosystem, was also archived. The archived part concerns secondary sales of BNB by parties other than Binance.
An illegality charge involving an offering called Simple Earn, which allows investors to lend tokens and earn interest, was also dismissed, although the rest of the related count will proceed.
Community reaction
Despite the judge upholding some of the charges, the crypto community continues to view the ruling as a positive one, especially when it comes to secondary market sales.
Metalawman says the SEC’s dismissal of claims regarding third-party secondary market sales is a victory for the cryptocurrency industry overall. The appeal of the ruling to the Case of ripple It also sets a significant precedent.
Metalawman also believes the decision supports Coinbase’s claim that an early appeal of Judge Failla’s decision is warranted, given that district courts disagree on the fundamental question of whether digital asset tokens sold on secondary markets constitute securities.
About the author
Tomiwabold Olajide
Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and trading forecasts on estimated market trends. Tomiwabold holds a bachelor’s degree from the University of Lagos.