tl;dr
The U.S. Securities and Exchange Commission (SEC) is continuing its lawsuit against cryptocurrency exchange Binance, its U.S. branch Binance.US, and former CEO Changpeng Zhao, accusing them of operating an unregistered securities exchange through the trading of Binance's native token, BNB, and ten o...
The U.S. Securities and Exchange Commission (SEC) is persisting in its lawsuit against cryptocurrency exchange Binance, its U.S. branch Binance.US, and former CEO Changpeng Zhao, alleging the operation of an unregistered securities exchange through the trading of Binance's native token, BNB, and ten other cryptocurrencies.
The SEC's case relies on the Howey Test, a legal standard used to determine if something qualifies as a security. It examines an investment of money, a common enterprise, and an expectation of profit derived from the efforts of others.
The regulator challenges Binance's position that secondary market trades fall outside the scope of securities laws, asserting that such transactions are also governed by the Howey Test.
The lawsuit has faced criticism from industry experts, including Coinbase's legal chief and Ripple's legal officer, for inconsistent enforcement. However, the SEC rejects claims of overstepping its authority, pushing back against industry criticism.
In response to the lawsuit, Binance is offering a free $600 exclusive welcome offer, while industry expert Wayne Jones has shared insights on blockchain technology and cryptocurrencies.
The SEC continues to target BNB and ten other cryptocurrencies, labeling them securities, including Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI.
Industry experts, including Coinbase’s legal chief, Ripple’s legal officer, and crypto attorney John Deaton, have criticized the SEC's enforcement methods, urging the regulator to re-evaluate its approach.
Binance is currently offering a free $600 exclusive welcome offer, and Wayne Jones, an industry expert, has offered insights into blockchain technology and cryptocurrencies.
Paul Grewal, Coinbase’s legal chief, and Ripple’s legal officer, Stuart Alderoty, have criticized the SEC for its inconsistent enforcement and rush to file a voluminous brief before Chair Gary Gensler steps down.