Binance in Court: US Securities and Exchange Commission Determined to Regulate the Crypto Industry

The US Securities and Exchange Commission (SEC) continues its efforts to strictly regulate the crypto industry. The first hearing has now taken place in their lawsuit against the world’s largest crypto exchange Binance. The outcome of the proceedings is open.

Read the latest news in the crypto industry and find other important financial news of the day with our companion app Born2Invest.

The crypto year 2024 begins in the USA with the Securities and Exchange Commission (SEC) in the headlines

First, the SEC allowed Bitcoin ETFs after years of blocking them . But just a few days later, the SEC confirmed in a lawsuit against the crypto exchange Coinbase that it was not even considering taking a generally balanced course towards Bitcoin and Co. Now, at the beginning of the week, the world’s largest crypto exchange Binance was the SEC’s opponent. The SEC’s lawsuit from June 2023 was heard in court here for the first time.

Among the process observers was MetaLawMan, who shares his impressions on X. The main topic was once again the SEC’s thesis that most major cryptocurrencies are actually securities and therefore require approval. Binance also has to defend its own cryptocurrency BNB here . The lawyers argue that there are no investment contracts linked to Binance Coin and that the SEC therefore has no jurisdiction.

According to MetaLawMan, Judge Amy Berman Jackson appeared well-prepared and unbiased. Binance had previously failed in its attempt to prevent the lawsuit from being filed in the first place. Like Coinbase, Binance believes that the SEC lacks a political mandate to expand its powers towards the crypto industry. However, this defense strategy apparently has little appeal in the courts.

However, the judge at least cited the first verdict from the SEC’s case against Ripple and XRP from last summer as “well thought out and well founded.” Here the SEC had to accept a severe defeat because the court did not want to classify XRP as a security.

Conclusion: Crypto has become a constant topic for the SEC

The SEC has targeted twelve altcoins in its lawsuit against Binance, including BNB and other heavyweights such as Solana (SOL) and Cardano (ADA). In the USA, the so-called Howey Test is actually supposed to provide information about when the SEC is responsible and when it is not. But this test is almost 100 years old and shows weaknesses when used in the crypto industry.

As the Coinbase proceedings also prove: The judges are entering new legal territory and have not yet taken a consistent line. It is becoming apparent that in 2024 we will often hear about the SEC in connection with the crypto industry.

__

(Featured image by Wesley Tingey via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us