- Federal Judge Amy Berman Jackson initiates a court review on the classification of digital assets, including Binance’s tokens, as securities.
- Binance.US lawyers to address the perpetual security status of digital assets and SEC’s claims on staking.
- The Howey test’s significance questioned in determining if Binance’s tokens, like BNB and BUSD, qualify as securities.
- Broader implications on SEC oversight of the cryptocurrency industry.
Federal Judge Amy Berman Jackson, overseeing the SEC case against Binance, Binance.US, and former CEO Changpeng Zhao, has mandated a review on the classification of digital assets as securities.
The court will assess how the SEC treats cryptocurrencies within existing regulatory frameworks.
Binance.US lawyers will address the perpetual security status of digital assets and the SEC’s claims regarding staking.
The Howey test, determining if an asset qualifies as a security, takes center stage, with the judge questioning its applicability to Binance’s tokens.
The court will explore whether an investment contract necessitates a contractual undertaking and if the SEC misunderstands the term “scheme” in Howey.
This development raises broader questions about the SEC’s oversight of the crypto industry.