Court dismisses some charges, but not all

United States District Court Judge Amy Berman Jackson allows the Securities and Exchange Commission’s (SEC) lawsuit against Binance to proceed.

However, Judge Jackson also dismissed some of the charges case.

The SEC accuses Binance of offering unregistered brokerage, trading and clearing services for digital asset securities in the United States.

In its ruling, the court upheld accusations related to Binance’s initial coin offering (ICO), ongoing sales for BNBBNB Vault and Staking Services, as well as allegations of failure to register and fraud.

But Jackson also granted Binance’s motion to dismiss the charges regarding the secondary sales of BNB and Simple Earn.

The decision highlighted the evolving nature of tokens. Just because a token was initially considered part of an investment contract does not necessarily mean it retains that classification indefinitely.

Commenting on the decision, Cody Carbone, policy manager at the Digital Chamber, highlighted the court’s clarification of the evolving nature of token classifications. He stressed the importance of distinguishing between tokens that function as securities and those that do not in today’s marketplace.

The SEC’s approach to regulating cryptocurrencies has been the subject of debate, with Justice Jackson criticizing the agency’s evolving stance and lack of a comprehensive regulatory framework tailored to the cryptocurrency industry.

US Treasury Implements Tax Reporting Requirements for Cryptocurrencies

Meanwhile, the U.S. Treasury Department has passed long-awaited tax regulations targeting cryptocurrency transactions.

Under new rules finalized on June 28, crypto brokers, including exchanges and payment processors, are now required to report sales and trades of users’ digital assets to Internal Revenue Service (IRS).

The move, part of the bipartisan $1 trillion Infrastructure Investment and Jobs Act of 2021, aims to combat tax evasion in the crypto space.

The regulation is expected to be phased in starting next year for the 2026 tax season. It is expected to align tax reporting on cryptocurrencies with existing requirements for traditional financial instruments like stocks and bonds.

Treasury officials noted that adjustments were made to the initial proposal to ease burdens on brokers and phase in the requirements.

Lawrence Zlatkin, Vice President of Taxation at Coinbasewelcomed the finalized rulemaking on X and commended the IRS for developing more practical rules focused on custodian brokers like Coinbase. He highlighted improvements to the implementation timeline and measures to avoid duplicate reporting.

However, Zlatkin expressed concerns about the lack of a de minimis rule and the inclusion of non-financial transactions, advocating for rules comparable to those of traditional financial brokers.

The final Treasury rule also includes a provision setting a $10,000 threshold for reporting transactions involving stablecoins.

Supreme Court limits regulatory powers

In another development, the Supreme Court has delivered a landmark ruling reduction the power of the executive branch to interpret laws, which has a significant impact on the regulatory powers of federal agencies.

The ruling, which overturned the long-standing doctrine of “Chevron deference,” allows the judiciary to take a closer look at agency actions in various policy areas, including crypto.

This underscores a move toward greater judicial oversight, giving courts more influence over the scope and interpretation of federal agency regulations.

In response to this legal backdrop, Coinbase General Counsel Paul Grewal spoke to X to highlight ongoing legal battles involving regulatory transparency.

Grewal criticized what he described as an obstructionist tactic by the SEC, aimed at hindering Coinbase’s efforts to obtain documents from SECOND President Gary Gensler in their litigation.

Coinbase has requested documents related to Gensler’s communications, arguing they are crucial to revealing possible due process violations in the SEC’s enforcement actions.

The request stems from statements Gensler made in March 2021, in which he noted the SEC’s limited regulatory authority over digital asset exchanges, a position Coinbase believes is relevant to its case against the regulator.

Fuente