When Do Secondary Token Sales Violate Howey?
A federal judge ruled that most of the SEC's case against Binance can proceed, but dismissed charges related to BUSD sale and secondary sales of BNB. The ruling maintained the status quo in crypto-securities litigation. Binance welcomed the ruling, emphasizing limits on SEC's regulatory authority. The judge allowed charges tied to BNB ICO, Binance's ongoing token sales, BNB Vault, and Exchange Act violations to move forward. The ruling sparked discussions on the application of securities law to cryptocurrencies. Coinbase filed notices related to the SEC case against it, citing the Binance decision. The SEC argued that the ruling doesn't affect its allegations against Coinbase or the assets it alleged were securities. The ruling comes amid significant Supreme Court decisions potentially impacting the crypto industry's relationship with federal regulators.
