According to Coindesk, a local judge in the District of Columbia has dismissed part of the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against the cryptocurrency exchange platform Binance and its founder, Changpeng Zhao (CZ).
In the order issued on Friday, Judge Amy Berman Jackson ruled that the SEC’s charges against Binance, including initial token offerings, continued sales of BNB, BNB Vault, staking services, unregistered activities, and fraud allegations, can proceed. However, she also granted Binance and CZ’s motion to dismiss the allegations related to BNB secondary sales and Simple Earn.
Last summer, the SEC filed a lawsuit against Binance, Binance.US, and its founder Changpeng Zhao, accusing these exchanges of providing unregistered brokerage, trading, and clearing services in the U.S., involving unregistered digital asset securities. Later, the SEC also made similar allegations against Coinbase, Kraken, ConsenSys, and MetaMask this week.
According to Fox Business reporter Eleanor Terrett, Judge Amy Berman Jackson stated in her dismissal of the motion regarding BNB secondary sales that the nature of tokens can evolve over time, and even if a token was initially considered a security, it does not necessarily mean it always remains a security.
Eleanor Terrett believes that this is a significant victory for digital asset secondary sales, as this case greatly enhances clarity regarding the sale of cryptocurrencies in the secondary market. In the future, exchanges such as Coinbase, ConsenSys, and Kraken can use this ruling to strengthen their positions in similar lawsuits.