SEC Suffers Setback as Judge Rules Binance’s BNB Secondary Sales Not Securities

• District Judge Amy Jackson dismissed the SEC’s claim that secondary sales of BNB tokens qualify as securities.
• The ruling argued that the nature of tokens can change over time.
• Judge Jackson criticized the SEC’s lack of a comprehensive regulatory approach.

A federal judge has rejected the U.S. Securities and Exchange Commission’s claim that secondary market sales of Binance’s BNB token constitute securities, delivering a significant win for the cryptocurrency exchange and providing clarity on the regulatory status of digital assets.

Judge Amy Berman Jackson of the U.S. Court for the District of Columbia rejected the SEC’s arguments that secondary market transactions of Binance’s BNB token met the criteria for securities as defined by the Howey Test.

The decision aligns with Judge Analisa Torres’ opinion in the Ripple lawsuit, which emphasized the importance of the economic reality of token transactions when applying the Howey Test. In her ruling, Judge Jackson highlighted the SEC’s encroaching stance on crypto regulations and criticized the agency for not adopting a comprehensive approach specific to the industry.

Judge Jackson ruled that the nature of …

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