- Judge Amy Berman Jackson ends the discovery phase, seeking further proceedings by July 29.
- The court dismissed the SEC’s claim on BUSD as securities, citing the US DOJ’s contradicting stance.
- BNB’s price rises by 1.8% following the ruling, reflecting market optimism.
In a significant development for the ongoing legal battle between Binance and the SEC, a judge has ordered the discovery phase to be concluded, and dismissed the SEC’s claims that BUSD constitutes a security under securities law.
In recent court filings, Judge Amy Berman Jackson issued minute orders ending the discovery phase, requesting that both parties file a joint submission by July 29 to outline further proceedings. The judge clarified that this submission must include deadlines for any motions to amend the complaint or seek relief from the recent decision to dismiss certain claims.
Besides, the submission should address “whether and how discovery would commence if any motions to amend or for relief are filed, and whether discovery should proceed in phases.”
A minute update outlining meeting plans was also added to the docket, directing the parties to confer on filing the required joint submission within the court’s deadline.
Binance’s recent legal victory over the SEC has rekindled positive sentiments among market participants. Meanwhile, the court’s decision aligns with Judge Torres’ ruling that secondary and programmatic sales of crypto assets are not securities.
Specifically, the court ruled that crypto tokens, including BNB sold on secondary exchanges, did not qualify as securities. Furthermore, it determined that stablecoin BUSD is not classified as a security, referencing US DOJ filings in the Mango Markets case, which contradicted the SEC’s stance on stablecoins.
Although the court rejected Binance.US’s motion to dismiss, the exchange remains watchful for the subsequent legal phases.
The court’s ruling represents a victory for Binance and the crypto space, which has faced stifling operational regulations from the SEC. Following this ruling, BNB’s price increased by over 1.8%, trading at around $524 at press time. In its recent intraday trading session, BNB fluctuated between $511.84 and $528.27, according to Coinmarketcap data.
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