Court Decisions in Binance vs. SEC Lawsuit: A Game Changer for the Crypto Market

• A US district judge has extended the Binance v. SEC lawsuit until 2026.
• The court approved the SEC’s motion to amend claims regarding Binance’s ICO, BNB sales and its staking program.

The ongoing legal battle between Binance and the United States Securities and Exchange Commission (SEC) is expected to extend into 2026, following recent district court orders. The judge granted several important motions, including one that allowed the SEC to review the original complaint filed in the case, which remains one of the most high-profile in the industry.

SEC Granted Leave to Amend Complaint

The SEC has now been able to file an amended complaint against Binance, Binance.US and Changpeng Zhao. The lawsuit, initially filed over unregistered securities sales, has expanded to other complaints regarding Binance’s conduct. Judge Amy Berman Jackson allowed the agency to amend the complaint based on the SEC’s use of the term “crypto asset securities.”

This approval comes amid criticism from the crypto community. Ripple Chief Legal Officer Stuart Alderoty said the term “crypto asset security” is an invention and the SEC is trying to twist the language.

As a result of the amended complaint, the court identified the principal allegations that will be investigated. Among these are claims that Binance’s initial coin offering (ICO) of its native token, BNB, and ongoing sales of BNB are securities sales. The SEC also questioned Binance.US’ staking program for offering unregistered investment contracts, according to the complaint.

Further claims are made against Changpeng Zhao for his role as controller of Binance and BAM Trading in connection with alleged violations of the anti-fraud provisions of the Securities Act. The court allowed the preliminary investigation into these allegations, but also dismissed certain allegations, including those regarding secondary sales of BNB and the sale of Binance’s own stablecoin, BUSD.

The court also said it would not determine the status of tokens such as SOL, ADA, and MATIC as securities in this case because the tokens are not named as defendants in this case.

Calendar extended until 2026

The court’s recent scheduling order provides a new timetable for the trial. The discovery process is likely to be lengthy as discovery is expected to conclude in November 2025. Document production and interrogatories must be served by July 2025, and expert deposition and discovery by March 2026.

Key deadlines include exchange of the initial disclosure by October 25, 2024 and responses to the amended complaint by November 4, 2024. The court has proposed a very elaborate agenda for how the case is to be processed, which actually extends the time frame. The case is now expected to continue until 2026, making it a long-running legal battle that could set the tone for future crypto regulations in the United States.

In June 2023, the SEC charged Binance with operating as an unregistered exchange, broker-dealer, and clearing agency, thereby violating federal securities laws. The SEC is seeking to bar Binance from these activities unless it is registered and further wants the company to return “ill-gotten gains” and pay civil penalties.