2024

Cardano

BUSD

<p class="is-style-lead">The highly anticipated hearing of the SEC’s lawsuit against Binance occurred today in Washington, as the trial revealed several challenges for the leading exchange.</p> 
<p>Last year, the SEC <a href="https://crypto.news/sec-vs-crypto/">accused</a> Binance and its U.S. arm of multiple violations, including inflating trading volumes, misusing customer funds, and misleading investors about market controls, further complicating the crypto regulatory landscape.</p> 
<p>In presiding over the case, Judge Berman Jackson took a direct approach, bypassing prepared arguments and asking incisive questions. Her <a href="https://twitter.com/MetaLawMan/status/1749475722379292766?t=_lxyqIA7YTYa4PuTAK8Afg&amp;s=19" target="_blank" rel="noopener">skepticism</a> about the necessity of a contract in an investment contract, drawing on the “scheme” language from the landmark Howey case, set a critical tone for the proceedings.&nbsp;</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">SEC v. <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@Binance</a> hearing, Update I<br><br>Judge Berman Jackson has dispensed with the prepared arguments and gone straight to questions.<br><br>She started with the defense team.<br><br>-She seemed skeptical that an investment contract actually requires a contract.<br><br>-She focused on the "scheme"…</p>— MetaLawMan (@MetaLawMan) <a href="https://twitter.com/MetaLawMan/status/1749475722379292766?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">January 22, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p> You might also like: <a href="https://crypto.news/bitcoin-etfs-in-us-approved-what-about-europe/"> Bitcoin ETFs in US approved. What about Europe? </a> </p> 
<p>Judge Jackson expressed doubts over the major questions doctrine and the fair notice arguments presented by the SEC, highlighting the ongoing debate around the extent of the SEC’s authority versus that of the Commodity Futures Trading Commission (CFTC).</p> 
<p>The Binance case, distinct from the Coinbase scenario, raised unique issues. Judge Jackson’s skepticism regarding the BUSD stablecoin being offered as an investment contract was evident. However, she seemed more open to the argument that Binance’s <a href="https://crypto.news/price/bnb/">BNB</a> token might have initially been offered as an investment contract. This led to a broader <a href="https://twitter.com/attorneyjeremy1/status/1749492211954208898" target="_blank" rel="noopener">discussion</a> about the status of tokens on secondary markets, challenging the SEC’s position that a token perpetually embodies an investment contract.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/attorneyjeremy1/status/1749492211954208898 
 </div>
</figure> 
<p>The court session ended without a clear resolution on the SEC’s jurisdiction over tokens like Filecoin, leaving out mentioning other major tokens such as Cardano or Solana. The judge resisted conducting mini-trials for each token mentioned in the complaint, especially when their issuers were not part of the case.</p> 
<p>As the legal battle unfolds, its outcomes are set to shape the future of cryptocurrency regulation, with the world watching closely.</p> 
<p> Read more: <a href="https://crypto.news/terra-developer-terraform-labs-files-for-chapter-11-bankruptcy/"> Terra developer Terraform Labs files for Chapter 11 bankruptcy </a> </p>

Binance vs. SEC: Judge shows skepticism on BUSD as investment contract

crypto.news

Other articles published on Jan 22, 2024

Bitcoin Price Turns Red, Why BTC Could Tumble Below $40K

Why Is the Crypto Market Down Today?

Bitcoin’s price drop and Grayscale outflows – Here’s what’s up

Do Kwon’s Terraform Labs Files For Chapter 11 Bankruptcy Protection In US

Myro Crypto Price Prediction – Can $MYRO Hit $1 and Become the Next $BONK or $PEPE?

Google Sets Sights on AI Innovation and Cost Efficiency for 2024 Amid Job Security Concerns

Join our free newsletter for daily crypto updates!