Federal Judge Rules on SEC Case Against Binance, Leaving Door Open for Future Arguments on Secondary Transactions

A federal judge has allowed most of the SEC's case against Binance to proceed, while dismissing charges related to the sale of BUSD and secondary sales of BNB. The ruling has been praised by the crypto industry for recognizing the limits of the SEC's regulatory authority over the industry. Attorneys for Coinbase have cited the Binance decision in their own cases against the SEC. Meanwhile, the denial of Coinbase's appeal has created confusion for the industry, as different courts now have different rules. Additionally, a fintech company called Synapse has $1 billion in assets associated with customer accounts, but only $265 million in obligations tied to those accounts. Unlike bank customers, fintech customers have no protection from the Federal Depository Insurance Corporation.