SEC Strengthens Case Against Binance, Focuses on BNB and Token Listing

• The SEC has filed an amended complaint in the Binance lawsuit. 
• The complaint emphasizes the currencies listed on Binance including the BNB token.
• The agency maintains that Binance acts as an unregistered securities platform.

The U.S. Securities and Exchange Commission (SEC) has filed an amended complaint in its ongoing lawsuit against Binance, focusing on the exchange’s listing process and other key areas. This follows a judge’s earlier rejection of some of the complaints in the initial lawsuit.

The amended filing emphasizes secondary BNB sales and the Binance Simple Earn program; points the judge did not fully address in her earlier ruling. The SEC also reiterated its stance on classifying ten digital assets as “securities,” claiming Binance operated as an unregistered securities platform.

SEC Targets Binance’s Role in Crypto Markets

The SEC highlighted Binance’s influence in listing and promoting digital assets, which it maintains are securities. The agency stated that the exchange plays an “integral part” in these markets, disseminating information and amplifying issuer and promoter statements. The filing read:

“The PAC also bolsters allegations not expressly ruled upon concerning certain offers and sales of BNB and the Ten Crypto Assets to address Defendants’ prior dismissal arguments and Defendants’ anticipated argument that the MTD Order’s reasoning as to BNB secondary sales should apply to allegations concerning the Ten Crypto Assets.”

It is important to note that the SEC’s amended filing cannot harm Binance because the leading exchange still has until October 11th to answer to the agency. The SEC filed its amended complaint to comply with a court-ordered deadline. 

Read also: SEC Crypto Crackdown: $4.7 Billion in Enforcement Actions This Year

The regulator also took aim at the BNB token, arguing that it represents Binance’s success and is offered to users with the expectation of returns, thus classifying it as a security. The SEC asserted that BNB, along with the ten other digital assets – SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI – were sold as unregistered securities, noting that employees were even paid in BNB, akin to stock options.

While the SEC’s amended filing strengthens its case, Binance has until October 11th to respond. The agency submitted the amended complaint to meet a court-ordered deadline. The legal battle between Binance and the SEC continues, with significant implications for the crypto industry.