SEC Rules Crypto Tokens Are Not Securities – Big Win for All Crypto
- A US court has ruled that crypto tokens are not securities, disputing the SEC's position against Binance.
- Binance has delisted several crypto pairs, including $BTC and $ETH ones, which could impact the wider crypto market.
- Following the news, the 24-hour crypto market volume has increased by 7.57%, while the meme coin market volume is up by 2.24%.
The SEC vs Binance case from 2023 came to a head - cryptocurrencies and BNB sales are not securities. Binance announced the victory yesterday, saying that BNB sales passed the Howey test successfully.
The court found that the SEC's approach muddied the issues and ignored controlling United States Supreme Court precedent. The court also emphasized that the focus should be on whether the circumstances surrounding each transaction render it a securities transaction.BinanceNot paying taxes on crypto gains (think of 10x-20x profits) is very bullish for all tokens, especially BNB-based ones like PlayDoge.
On the other hand, Binance just announced a delisting of key crypto pairs, including several $BTC and $ETH ones (like BTC/AEUR and ETH/AEUR). This might negatively impact the market, the extent of which remains to be seen.
Let's discuss why the SEC's ruling works in crypto's favor and what the future may hold for crypto tokens.
How Does the SEC's Ruling Impact Cryptocurrencies?The SEC previously said that 68 crypto tokens (including $ADA, $MATIC, $AXS, and $BNB) were securities, raising market-wide worries among investors.
Yesterday's ruling means two things:
- Crypto profits are not taxed as securities
- Crypto assets could go bullish
The apocalyptic scenario many investors envisioned didn't materialize, and we may see a more bullish market soon.
The 24-hour crypto market volume has already increased by 7.57%, reaching $57.81B. This sent many tokens pumping, like $ZK (+2.41%) and $CFX (+2.28%).
Meme coins are also in the green, with the 24-hour trading volume increasing by 2.24%. Several tokens have pumped:
Bitcoin ETFs have also recently received a massive $129M inflow, which could bode well for Bitcoin and $BTC-related projects like 99Bitcoins.
Binance's legal dispute with the SEC isn't over yet, as the next court hearing is on July 9. But the company is confident in its position.
On Friday, the Court decided that the SEC's case against https://t.co/AZwoBOh0gq will continue. We were prepared for this and look forward to having this case move forward in the judicial process.https://t.co/AZwoBOh0gq was established with the express purpose of serving United...
- Binance.US
(@BinanceUS) July 1, 2024
It remains to be seen how the situation unfolds and whether this will further impact crypto prices.
Why Did Binance Remove Crypto Pairs and What Does It Mean?A couple of hours ago, Binance announced they'd remove several crypto pairs:
- AI/TUSD
- BTC/AEUR
- CHR/BNB
- ETH/AEUR
- GAS/FDUSD
- LQTY/FDUSD
These changes were part of Binance'srisk management and market stability strategies.
Historically, such moves from influential exchanges like Binance have significantly impacted crypto market sentiment.
Bitcoin and Ethereum have already dropped by almost 4% in the last 24 hours, likely due to this news.
All the delisted tokens (aside from Chromia) also decreased in the last day, though it's unlikely they'll spread market-wide FUD.
Binance has a history of delisting crypto coins it deems risky and unstable, so investors are already used to this.
What Does the Crypto Future Hold?The SEC's favorable ruling brings more investor confidence than Binance's crypto pair delisting takes away.
The SEC's potential ruling that crypto should be classified as securities was the greatest threat to the crypto industry.
Following this news, community sentiment should improve significantly, which might lead to price increases for all coins.
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