In a significant development in the ongoing legal battle between Binance and the US Securities and Exchange Commission (SEC), cryptocurrency A prominent lawyer in the legal industry known by the nickname MetaLawMan shared his analysis of the recent court decision.
According to MetaLawMan, Judge Jackson’s decision is largely based on Judge Torres’ reasoning in the Ripple case. The judge rejected the SEC’s allegations based on secondary market sales, stating that the complaint did not contain facts sufficient to support a reasonable inference that any secondary sales met the Howey test for an investment contract.
MetaLawMan highlighted the judge’s criticism of the SEC’s approach, noting that the SEC’s theory “leaves the Court, the industry, and future buyers and sellers without a clear principle of distinction between tokens that are securities in the marketplace and tokens that are not.”
The judge also criticized the SEC for its inconsistent conduct during the hearing on the motion. The SEC seemed to be talking both ways about whether assets sold as securities retain that nature in perpetuity.
This decision strengthens Coinbase’s argument that an immediate appeal of Judge Failla’s decision is warranted because district courts have reached different conclusions on the fundamental question of whether digital asset tokens traded in secondary markets qualify as securities.
However, the judge allowed a number of claims based on the Binance Coin (BNB) Initial Coin Offering (ICO) and Binance’s staking-as-a-service to proceed.
Despite this, MetaLawMan believes that the SEC’s decision dismissing allegations involving secondary market sales by third parties is clearly a win for the larger crypto industry.
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Also Android And IOS Download our apps and start tracking live prices now!