Judge Investigates Binance in Milestone Crypto Case Hearing
Today, Binance faced a critical legal challenge with the hearing, part of the ongoing lawsuit filed by the SEC last June, which saw federal Judge Amy Berman Jackson press Binance’s legal team with probing questions.
Central to the hearing was whether cryptocurrencies on Binance’s platform are considered securities under current laws. Judge Berman specifically asked for Binance’s perspective on this contentious issue, highlighting the need for clarity in an industry often involved in legal uncertainties.
Jackson:
“I don’t think the government in any case has said that a digital coin is always a security. The case law is focused on the totality of the circumstances, how it was sold, how was it marketed? what were the reasonable expectations for return?”
— Casey Wagner (@caseywagnerr) January 22, 2024
The discussion also ventured into the previous court decisions, particularly focusing on the XRP case and the Terra (LUNA) ruling. Binance’s lawyers aligned with the Ripple decision but expressed disagreement with the Terraform Labs ruling. They argued that the court’s stance on secondary sales being investment contracts due to proceeds returning to the blockchain was flawed.
Judge Berman’s questioning reflected the necessity of discerning the legal nature of digital currencies and their alignment with financial regulations. This hearing represents a critical juncture in defining the regulatory framework for the cryptocurrency industry.
The implications of the unfolding courtroom drama for Binance and the broader crypto market are immense. The industry watches keenly as the case could set significant precedents for how digital currencies are treated legally worldwide.
Also Read: Binance Gears Up for Legal Battle with SEC in Washington
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