NOIDA (CoinChapter.com)— The Binance SEC lawsuit took a bad turn for the exchange US authorities continue their legal actions. Recently, the SEC expanded its litigation efforts against Binance and its founder, Changpeng Zhao (CZ), adding to the growing list of regulatory actions worldwide.
This follows news from Washington about increased regulatory pressures on major crypto exchanges.
Judicial Ruling: Implications for Binance and CZ
Judge Amy Berman Jackson’s recent ruling in the SEC v. Binance case adds significant legal challenges for Binance.
The court decided that the bulk of the Securities and Exchange Commission’s allegations, which include offering and selling unregistered securities, operating without proper registrations, and engaging in fraudulent practices, will proceed.
The allegations in the Binance SEC lawsuit highlight the severity of the regulatory pressures facing Binance and CZ.
The SEC has accused Binance and its affiliates of offering crypto assets such as BNB, BUSD, and various investment programs without proper registration, violating federal securities laws.
Moreover, the ruling highlights operational concerns, noting Binance.com and Binance.US failed to segregate customers’ assets, raising questions about asset management and security. The implications are significant for CZ.
Additionally, Zhao’s legal troubles could harm his reputation and influence in the crypto community. Furthermore, the court’s decision in the Binance SEC lawsuit suggests that CZ could face prolonged legal scrutiny, potentially impacting his role and future within the industry.
Operationally, Binance might need to undergo substantial changes to comply with regulatory requirements. This could involve registering as an exchange, broker-dealer or clearing agency, and segregating assets stringently.
These changes would increase operational costs and place Binance under closer regulatory surveillance.
BNB Price Celebrates Minor Win
BNB bulls seemed to be celebrating one aspect of the judgment in the Binance SEC lawsuit. In a partially favorable ruling for Binance, the court dismissed the SEC’s charges related to secondary market BNB sales and Simple Earn.
Moreover, the bulls seem to be defending multi-month trendline support, with BNB price rallying just 1% to reach a daily high near $573.
If BNB price succumbs to bearish pressure, the Binance token price could drop to the support level near $538. Breaching immediate support might force the BNB price to drop to the support level near $506 before recovery.
On the other hand, a recovery rally from here, following the Binance SEC lawsuit news, could see BNB price rise to the 20-day (red) and 50-day (purple) EMA resistance confluence near $596. Moreover, flipping the immediate resistance could bring BNB price rise to the resistance near $638.
The relative strength index for BNB remained neutral, with a score of 40.84 on the daily charts.
