The cryptocurrency industry scored a major legal victory on 2 July 2024, when a US federal court ruled that cryptocurrencies and secondary sales of the BNB token do not constitute securities. This decision was issued by Judge Amy Berman Jackson of the US District Court for the District of Columbia.
Judge Jackson’s decision
According to Judge Jackson, BNB’s cryptocurrency and secondary sales do not constitute securities offerings. This verdict represents a significant victory for Binance.US, the US arm of the world’s largest cryptocurrency exchange, Binance. The judge rejected several claims made by the US Securities and Exchange Commission (SEC).
Binance announced that “the court found that the SEC failed to prove that the secondary market purchasers purchased BNB with the expectation of profit, rather than for other uses.” This point is crucial to passing the Howey test, a legal framework…
