- SEC Amends Case Against Binance to Redefine Cryptocurrency Securities
- The decision came after the court ruled that BNB was not a security.
Over the past few months, the SEC has faced undue regulatory and compliance concerns regarding Binance (BNB). After numerous losses, fines, and jail sentences for its CEO, Binance’s fortunes changed in July.
As previously reported by AMBCrypto, Binance reported a legal victory after a court allowed Binance to access customer funds held by the U.S. Treasury.
In a recent development, the SEC is considering filing a lawsuit against Binance, deeming tokens like Solana (SOL) to be securities.
SEC Changes Case Against Binance
After a long legal battle, the SEC is reconsidering its case against Binance and its former CEO, Zhao.
According to a recent report, the Commission has amended its case against a cryptocurrency exchange in connection with third-party cryptocurrency asset securities issues.
The court filing, via an official statement, states:
“Defendants have refused to consent to the commencement of an evidentiary investigation, arguing that they cannot do so without reviewing the SEC’s Proposed Amended Complaint. However, the SEC is not requiring Defendants to consent to conducting a substantive evidentiary investigation into the potential new allegations in the SEC’s Proposed Amended Complaint.”
The SEC’s decision comes amid a flurry of changes since the court ruled earlier this year that BNB was not a security, with the CFTC chairman clarifying that 80% of cryptocurrencies are not securities.
You will have 30 days to amend the motion and resolve any pending issues.
This development will have major implications for the entire cryptocurrency market, as the SEC is investigating various cryptocurrencies and exchanges over the security regulations of tokens such as Ripple (XRP).
The most important thing to note is that the SEC’s decision will have a significant impact on Binance Coin.
Potential Impact on BNB
At the time of writing, BNB was trading at $573.53 after a 2.17% drop on the weekly chart. BNB was also down 3.41% on the daily chart.
Despite the price drop, volume has surged by 12.92% in the last 24 hours. The prevailing market sentiment is positive.
Source: TradingView
First of all, BNB’s Directional Movement Index (DMI) showed that the price was experiencing higher highs than lows. At the time of writing, the positive index of 21 was above the negative index of 15.
This suggests that buyers are stronger than sellers, and therefore prices are likely to rise.
Also, the Moving Average Convergence Divergence (MACD) showed that the 12-period EMA was above the 26-period EMA. Therefore, the short-term momentum was stronger than the long-term momentum.
Source: TradingView
Additionally, the altcoin Chaikin Money Flow (CMF) was positive at 0.08, meaning that buying pressure was higher than selling pressure at the time of publication of this article.
Source: Coinglass
Furthermore, according to AMBCrypto’s Coinglass analysis, BNB has experienced stability in liquidations. Over the past seven days, long liquidations have decreased from $943,000 to $131,000.
Similarly, long position liquidations also showed a downward trend over the same period.
Read Binance(BNB) Price Prediction 2024-25
Therefore, the analysis results show that BNB, the native token that gives Binance a favorable legal status, will experience a price surge.
Investor confidence has been low due to ongoing regulatory issues. Therefore, Binance will seek to attract and increase investor confidence through clear channels to further increase BNB buying pressure.