The US Securities and Exchange Commission (SEC) failed in its attempt to categorize secondary sales of BNB, Binance's native token, and the Binance USD (BUSD) stablecoin as securities, as per a court filing signed by Judge Amy Berman Jackson on June 28. The court, referencing a previous ruling in the SEC vs. Ripple Labs case, dismissed the SEC's claim regarding secondary BNB sales. It emphasized that determining if a secondary market sale constitutes an investment contract hinges on the unique circumstances and economic reality of each transaction. The court rejected the SEC's argument that all subsequent token sales of BNB would also be considered securities if the token was initially sold as an investment contract. It highlighted the importance of evaluating the specific details and context of each secondary transaction and pointed out inconsistencies in the SEC's position, demanding more factual evidence to plausibly allege profit expectations from secondary sales under the Howey test. The ruling was seen as a setback for the SEC by industry experts like Scott Johnsson and James Murphy, who perceived it as a victory for the broader crypto industry. The court's decision could have implications on similar cases involving crypto exchanges like Kraken and Coinbase facing regulatory challenges from the SEC for trading unregistered securities. Although the SEC's secondary market sales claim was dismissed, the court largely supported the SEC in its lawsuit against Binance, allowing investigations into Binance's token sale program, potential anti-fraud violations, and allegations of CEO Changpeng Zhao's influence over Binance's operations. The lawsuit, initiated in June the previous year, stemmed from the SEC's allegations of Binance operating unlawfully in the US by offering unregistered securities sales. Following the court's recent order, the next hearing is set for July 9.