A recent decision by the Second Circuit has significant implications for the application of US securities laws to non-US entities, particularly in the cryptocurrency sector. The ruling, favoring the SEC, may affect ongoing cases against major crypto exchanges like Coinbase, Binance/Binance.US, and Kraken. The court's main takeaway was that "if you don’t block US users, you won’t block US securities laws." Additionally, the SEC's effort last year to freeze Binance US operations via a Temporary Restraining Order resulted in mass layoffs at the company due to a revenue implosion and market trust issues. The appeals court also overturned a district judge's decision to dismiss an aspiring class action lawsuit against Binance, challenging the notion that claims against it constituted an impermissible extraterritorial application of securities law.
It's not over yet. An appeals court has ruled that a district judge improperly dismissed an aspiring class action lawsuit against Binance. https://t.co/l89GcKYN1u
The appeals court disagrees with the ruling that the claims constitute "an impermissible extraterritorial application of securities law." https://t.co/fmcE4FAwFg
an unfortunate result; the Binance dismissal was one of few really useful/extensible 'wins' on the defense side in crypto litigation TLDR takeaway is that your claim to be outside of U.S. jurisdiction is going to fare better if you embrace being regulated in some other jx https://t.co/HTuuH7RDwa
an unfortunate result; the Binance dismissal was one of the few really useful/extensible 'wins' on the defense side in crypto litigation https://t.co/HTuuH7RDwa
The @SECGov effort last year to freeze @binance_us operations via a Temporary Restraining Order led to mass layoffs at the company as revenue imploded and it struggled with market trust, one of its executives said during a court deposition. https://t.co/fxiN8CnqTg
In another example of crypto using the courts to fight back against unwarranted regulatory interference, blockchain advocates stopped a U.S. statistics agency from issuing an unconventional request for mining energy metrics. An opinion: https://t.co/4vCl9NvzmX
A recent ruling in the @SECGov's favor may have implications for the SEC's other cases against crypto exchanges like Coinbase, Binance/Binance.US and Kraken. An opinion: https://t.co/adLl5GGWm2
Great overview of the Second Circuit’s decision today, which has implications on how US securities laws may apply to non-US entities. My main takeaway: if you don’t block US users, you won’t block US securities laws. https://t.co/eL06j6CvgE