Markets
SEC Amends Case Against Binance to Redefine Crypto Securities
- The SEC has amended its case against Binance to redefine crypto securities.
- The decision comes after the court ruled that BNB is not a security.
In recent months, the Securities and Exchange Commission has faced issues of overregulation and compliance with Binance [BNB]After numerous losses, fines and prison sentences for the CEO, Binance’s fortunes changed in July.
As previously reported by AMBC EncryptionBinance has scored legal victories after a court allowed the firm to use customer funds held in the U.S. Treasury.
In the recent turn of events, the SEC is weighing the case against Binance, considering tokens such as Solana [SOL] as titles.
SEC Amends Case Against Binance
After a lengthy legal battle, the SEC is reconsidering its case against Binance and former CEO Zhao.
According to a recent report, the commission has amended its case against the cryptocurrency exchange over the issuance of third-party cryptocurrency securities.
THE filing in court through the official statement he stated that,
“Defendants were unwilling to agree to commence a substantive investigation, arguing that they could not do so without reviewing the SEC’s proposed amended complaint. However, the SEC is not requiring defendants to agree to conduct a substantive investigation of potential new allegations in the SEC’s proposed amended complaint.”
The SEC’s decision comes amid a wave of changes after the court held that BNB was not a security earlier this year. The CFTC chairman clarified that 80% of cryptocurrencies are not securities.
It will take 30 days to amend the motion and resolve any outstanding issues.
The development is significant for the broader cryptocurrency markets, as the SEC has been going after various cryptocurrencies and exchanges over the security statutes of their tokens, such as Ripple [XRP].
But most importantly, 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% decline on the weekly charts. Additionally, BNB is down 3.41% on the daily charts.
Despite the price decline, its trading volume increased by 12.92% in the last 24 hours. The prevailing market sentiment was positive.
Source: TradingView
For starters, BNB’s Directional Movement Index (DMI) showed that prices were experiencing higher highs than lows. At press time, the positive index at 21 was above the negative index at 15.
This suggested that buyers were stronger than sellers, thus predisposing prices to rise.
Also, the Moving Average Convergence Divergence (MACD) showed that the 12-period EMA was above the 26-period EMA. So, the short-term momentum was stronger than the long-term momentum.
Source: TradingView
Additionally, altcoin Chaikin Money Flow (CMF) was positive at 0.08, meaning that buying pressure was higher than selling pressure at press time.
Source: Coinglass
Looking deeper, AMBCrypto’s analysis on Coinglass showed that BNB has been experiencing stability in liquidation. Over the past seven days, long position liquidation has dropped from $943K to $131K.
Similarly, over the same period, liquidations of long positions decreased.
Light By Binance [BNB] Price forecast 2024-25
Therefore, the analysis shows that due to the favorable legal status of Binance, its native token, BNB will see a surge in prices.
Constant regulatory issues reduce investor confidence; therefore, with a clear path, Binance will attract and increase investor confidence, further increasing the pressure to buy BNB.