A US Judge offered market participants clarity on the secondary market sales of digital assets and dismissed part of theSecurities and Exchange Commissions (SEC) lawsuit against Binance. In the lawsuit the SEC claims that the secondary market sales, or sales on an exchange, of the native token Binance Coin (BNB) qualify as a security.

The ruling Judge cited a ruling from the SEC vs. Ripple lawsuit, marking a big win for crypto traders.

Judge Amy Berman Jackson dismissed part of the SECs lawsuit against Binance on Friday. The ruling marks a milestone for crypto traders; it was determined that secondary sales of Binances BNB token do not qualify as securities under the Howey Test.

Of 13 counts, 10 will proceed entirely and two partically. One count is entirely dismissed post Judge Jackson's ruling. The count that was entirely dismissed is related to the sales of Binance USD (BUSD), a stablecoin that is now partially defunct.

SEC vs. Binance

Judge Jackson says that the governments reliance on the assertion that crypto assets are the embodiment of investment contracts is not enough to treat BNBs secondary market sales as securities. Ripple proponent attorney Bill Morgan explains Judge Jackson's ruling and why it matters in a recent tweet on X:

In her ruling in the SEC vs. Ripple lawsuit, Judge Analisa Torres says that secondary market sales of XRP do not satisfy the Howey test and therefore are not investment contracts.

The SEC has been pushing the theory that crypto tokens may not be securities, they are investment contracts. Judge Jacksons ruling brings relief to crypto traders on the issue of secondary market sales of cryptocurrencies and concludes that assets are not investment contracts since they do not satisfy the Howey test.

Binance coin (BNB) has been in a state of decline since June 6 high of $721.80. BNB dropped to June 24 low of $551.20. The momentum indicator Moving Average Convergence Divergence (MACD) shows underlying negative momentum in BNBs price trend.

BNB could rally towards $591.50, the 23.6% of the Fibonacci retracement level of the decline from June 6 to 24.

BNB/USDT daily chart

Binance coin could find support at the June 24 low of $551.20, as seen in the chart above. BNB trades at $571.40, at the time of writing.

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Big win for crypto as Judge dismisses part of SEC case against Binance BNB token - FXStreet