A US judge has ruled that most of the Securities and Exchange Commission's (SEC) lawsuit against Binance, the world's largest cryptocurrency exchange, and its founder ChangpengCZ Zhao can move forward. The SEC had accused Binance and Zhao of mishandling customer funds, providing false information to investors and regulators, and violating securities regulations.

Despite Binance's objections and request for dismissal, the judge allowed 10 out of 13 counts to proceed in full, while two counts will proceed partially, and one count was dismissed. The dismissed count pertained to the sale of BUSD, a stablecoin, and a portion of a count related to the secondary sales of BNB, Binance's token.

The SEC's allegations that Binance's staking program, the initial sale of BNB, and Zhao's role as a "control person" will be heard in court. This ruling is a significant setback for Binance, as the company faces the prospect of a high-stakes legal battle with the SEC.

While the partial dismissal of certain claims was unexpected and seen as a win for Binance, finance experts suggest this ruling could also benefit other crypto firms like Coinbase, Kraken, and ConsenSys in their own legal battles with the SEC.

The SEC, led by Chair Gary Gensler, continues to assert that most digital tokens should be regulated as securities under its purview. However, the classification of digital tokens as securities remains unresolved, awaiting clarification from Congress. The industry has accused the SEC of exceeding its authority.