In a significant victory for the web3 sector, a court has dismissed charges from the US Securities and Exchange Commission (SEC) alleging that secondary sales of Binance's BNB token and BUSD stablecoin constitute the distribution of unregistered digital asset securities. The ruling is a major blow to the SEC's efforts to classify cryptocurrencies as securities, and has been celebrated by the crypto community.

Judge Amy Berman Jackson of the District Court for the District of Columbia dismissed the charges, stating that the SEC's suggestion that the token is "the embodiment of the investment contract" rather than the subject of the investment contract, "muddied the issues before the Court." The judge also cited a previous ruling concerning Ripple's XRP, which found that digital tokens do not in and of themselves constitute securities investment contracts, regardless of whether a token's primary distribution occurred via a securities investment contract.

The ruling is a significant win for the crypto industry, as it sets a precedent for the classification of digital assets. The SEC has been attempting to classify cryptocurrencies as securities, and has been met with resistance from the crypto community. The ruling is a validation of the approach taken by Judge Torres in the Ripple case, which applied the Howey Test on a transaction-by-transaction basis rather than accepting the SEC's vague arguments.

The SEC has been criticized for its approach to regulating the crypto industry, with many arguing that it is waging a campaign of retroactive regulation-by-enforcement. The agency has been sued by Coinbase and Consensys, and has been accused of failing to adhere to its formal rulemaking process regarding cryptocurrency.

The ruling is a major victory for Binance, which has been facing charges from the SEC alleging that its initial coin offering for Binance Coin (BNB), ongoing sales of BNB, staking services, and BNB Vault products constituted the unlicensed offer and sale of securities. The court allowed the majority of the SEC's charges against Binance to proceed, but dismissed the charges concerning the secondary sales of BNB.

The price of BNB is up 1% over the past 24 hours, according to crypto price feeds. The ruling is a significant development in the ongoing debate over the classification of digital assets, and has been celebrated by the crypto community.