Judge Concludes Discovery Phase in Binance vs. SEC Lawsuit

In the ongoing legal battle between Binance and the United States Securities and Exchange Commission (SEC), Judge Amy Berman Jackson has issued several detailed orders to conclude the discovery phase.

The development is crucial in the trial involving Binance, its former CEO Changpeng Zhaoand Binance.US. The district court dismissed some of the SEC’s claims for securities law violations related to the sales of BUSD, Simple Earn and the secondary sales of BNB.

Deadlines are set for the remaining motions.

Judge Jackson asked both sides to submit a joint submission by July 29, specifying a schedule for subsequent proceedings. This submission must include deadlines for any motions to amend the complaint or seek relief from the recent decision on the motion to dismiss. According to the court order, the submission must also indicate “whether and how discovery would begin if motions to amend or relieve are filed, and whether discovery should proceed in stages.”

Additionally, the court filing now includes a detailed update on the scheduling of conference proceedings. This update requires Binance and the SEC to meet and confer to prepare the joint submission by the court-ordered deadline.

Binance’s partial victory fuels market sentiment

The court’s recent decision was seen as a partial victory for Binance, which has been positively influencing the cryptocurrency market. The judge’s decision aligns with the precedent set by Judge Torres, stating that crypto tokens are not inherently securities.

Specifically, the court found that BNB sales on secondary markets were not adequately considered securities and ruled that the BUSD stablecoin was not classified as a security. This decision was based in part on documents filed by the U.S. Department of Justice in the Mango Markets lawsuit, which contradicted the SEC’s position on BUSD and other stablecoins.

Despite this partial victory, the court denied Binance.US’ motion to dismiss. The exchange remains vigilant and prepared for the subsequent phases of the legal process. Following the decision, the price of BNB has seen a 1.38% increase in the last 24 hours, trading around $524.

Broader regulatory context and reactions

The lawsuit is part of a broader regulatory effort by the U.S. government to closely monitor and regulate the ever-growing cryptocurrency industry. The SEC’s actions against Binance are similar to crackdowns on other major cryptocurrency exchanges like Coinbase and Kraken. The legal battle has sparked mixed reactions within the crypto community.

David Barrera, Enumma co-founder and CEO, commented on the possibility of the SEC amending its complaint or seeking relief from the court’s recent decision, suggesting that the regulator may continue its search for additional evidence to support its case against Binance.

The SEC’s lawsuit filed last year accuses Binance The SEC accuses Binance and its CEO of several misdeeds, including embezzling customer funds, misleading investors, increasing trading volumes, and failing to prevent U.S. customers from accessing its platform. The SEC also claims that Binance allowed trading in financial products that must be properly registered.

Fuente