This never-ending lawsuit by the SEC against Binance resembles a game of poker. I find it amazing how much disruption can take place in crypto space from the perspective of just one judge. It was as if Judge Amy Berman Jackson had reshuffled her cards all over again when her order called for another review regarding her ruling on third-party tokens.
I've been watching this case closely, and it perfectly epitomizes the way the SEC is throwing everything but the kitchen sink at Binance. It's not only BNB and BUSD; they dragged ten other cryptocurrencies into the mix. Well, boy, that's rather bold, isn't it? I can't help wondering if they don't overplay their hand.
Binance's lawyers thought they had a win after interpreting a judge's ruling as kicking these third-party tokens out of the case. But Judge Jackson quickly pumped the brakes on that notion. It goes to show just how complex and nuanced some legal battles are, remembering things is not always about what is written there in the ruling but its interpretation.
It's playing Jenga with the legal system, a scenario wherein the SEC is desperately pulling out one block at a time, all to bring down Binance's tower. Of course, Binance will contest any such moves in a bid to maintain its structure intact. If these third-party tokens are allowed to stay in the case, that might open the door for a whole new can of worms. Judge Jackson called out bloggers for misinterpreting her ruling. At least it's a good reminder not to jump to any conclusions or try to extrapolate these rulings too broadly.
I look forward with bated breath to what happens past the July 29 deadline of the proposed schedule. Will there be a flurry of activity, or is this case dragging on for months? The repercussions, I feel, can be huge for the entire crypto industry. If the SEC wins, it will set such strong precedence that it will probably hit many other exchanges and tokens hard.
At the end of the day, I think this case is about much more than just Binance. Indeed, it goes directly to the heart of why there should be defined outer limits of crypto regulation in the US. The SEC appears hell-bent on shoehorning crypto into its regulatory environment; however, is this the way? I am not quite so sure. Perhaps it would help if we had a different system, one that understood the very nature of cryptocurrencies and blockchain technology.
