{"id":331552,"date":"2023-06-06T11:48:05","date_gmt":"2023-06-06T10:48:05","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=331552"},"modified":"2023-06-06T11:48:05","modified_gmt":"2023-06-06T10:48:05","slug":"bnb-busd-not-securities-binance-rejects-secs-security-labels","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bnb-busd-not-securities-binance-rejects-secs-security-labels\/","title":{"rendered":"BNB, BUSD &#8216;not securities&#8217; &#8211; Binance rejects SEC&#8217;s security labels"},"content":{"rendered":"<p>Crypto exchange Binance has refuted the U.S. Securities and Exchange Commission's (SEC) <a href=\"https:\/\/cryptoslate.com\/binance-cz-says-sec-lawsuit-is-an-attack-on-the-entire-industry\/\">assertion<\/a> that its BNB token is a security, according to a statement shared with <em>CryptoSlate<\/em>.<\/p>\n<p>On June 5, the SEC labeled the BNB token, alongside digital assets like BUSD, ADA, ALGO, FIL, and others, as securities in its <a href=\"https:\/\/cryptoslate.com\/binance-and-cz-sued-by-sec-for-breaching-securities-law\/\">lawsuit<\/a> against Binance.<\/p>\n<h2>Binance refutes SEC's claims.<\/h2>\n<p>In an e-mailed response to\u00a0<em>CryptoSlate<\/em>, a Binance spokesperson said BNB is a native token designed to create an internal economy, adding that its value derives from its participants.<\/p>\n<p>Binance said:<\/p>\n<blockquote><p>&#8220;BNB allows users who want to engage with projects (such as gaming, social, financial, or other utilities) built on those chains to transact with BNB, creating user demand for BNB as a reflection of community-built projects. The coins do not represent an investment contract of any sort and as such are not securities.&#8221;<\/p><\/blockquote>\n<p>Additionally, the crypto exchange faulted the Commission's classification of BUSD as security. According to the firm, BUSD is a fiat-backed stablecoin that another independent financial agency in the U.S., the Commodities Futures Trading Commission (CFTC), has described as &#8220;a non-security commodity&#8221; through court action.<\/p>\n<p>Meanwhile, this is not the first time the SEC would <a href=\"https:\/\/cryptoslate.com\/terra-related-tokens-dump-as-sec-labels-them-securities\/\">describe a crypto project<\/a> as a security. In April, the Algorand Foundation <a href=\"https:\/\/cryptoslate.com\/algorand-down-10-despite-foundation-claims-that-it-isnt-security\/\">refuted<\/a> the Commission's classification of its <a href=\"https:\/\/cryptoslate.com\/coins\/algorand\/\">ALGO<\/a> token as a security.<\/p>\n<p>SEC chair Gary Gensler has <a href=\"https:\/\/cryptoslate.com\/sec-chairman-gary-gensler-calls-bitcoin-a-commodity\/\">maintained<\/a>\u00a0that all digital assets except Bitcoin (<a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">BTC<\/a>) are securities and highlighted the\u00a0<a href=\"https:\/\/cryptoslate.com\/sec-chair-gensler-highlights-crypto-firms-non-compliance-in-house-committee-testimony\/\">noncompliance<\/a>\u00a0of crypto firms.<\/p>\n<h2>SEC action wiped over $4B from BNB market cap<\/h2>\n<p>News of the SEC's lawsuit and its security classification of BNB wiped more than $4 billion from the asset market cap during the last 24 hours, according to <em>CryptoSlate<\/em> data. BNB's market cap dropped to as low as $42.54 billion from a peak of $46.93 billion.<\/p>\n<p>It has since retraced to $43.35 billion as of press time.<\/p>\n<p>Additionally, the exchange's native token declined more than 10% to a low of $272.89<span aria-hidden=\"true\">\u2014its lowest value since March 12, according to <em>CryptoSlate\u2019s<\/em> data. The token was trading for $278.14 at the time of writing.<\/span><\/p>\n<figure id=\"attachment_331556\" aria-describedby=\"caption-attachment-331556\" style=\"width: 923px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-331556\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/06\/BNBUSD_2023-06-06_10-42-49.png\" alt=\"BNB price performance\" width=\"923\" height=\"652\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/06\/BNBUSD_2023-06-06_10-42-49.png 923w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/06\/BNBUSD_2023-06-06_10-42-49-300x212.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/06\/BNBUSD_2023-06-06_10-42-49-768x543.png 768w\" sizes=\"(max-width: 923px) 100vw, 923px\" \/><figcaption id=\"caption-attachment-331556\" class=\"wp-caption-text\">Source: Tradingview<\/figcaption><\/figure>\n<p>BNB's crash reflects the performance of the broader crypto market during the last 24 hours. <em>CryptoSlate<\/em> <a href=\"https:\/\/cryptoslate.com\/sec-induced-panic-saw-53-billion-wiped-from-crypto-market\/\">reported<\/a> that the SEC action wiped off $53 billion from the total crypto market cap.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto exchange Binance has refuted the U.S. Securities and Exchange Commission&#8217;s (SEC) assertion that its BNB token is a security, according to a statement shared with CryptoSlate. On June 5, the SEC labeled the BNB token, alongside digital assets like BUSD, ADA, ALGO, FIL, and others, as securities in its lawsuit against Binance. Binance refutes [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":331572,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[76230,76800],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>BNB, BUSD &#039;not securities&#039; - Binance rejects SEC&#039;s security labels<\/title>\n<meta name=\"description\" content=\"BNB market cap crashed by around $4 billion despite Binance insistence that the token is not a security.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/bnb-busd-not-securities-binance-rejects-secs-security-labels\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BNB, BUSD &#039;not securities&#039; - Binance rejects SEC&#039;s security labels\" \/>\n<meta property=\"og:description\" content=\"BNB market cap crashed by around $4 billion despite Binance insistence that the token is not a security.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/bnb-busd-not-securities-binance-rejects-secs-security-labels\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-06T10:48:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/06\/bnb.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/bnb-busd-not-securities-binance-rejects-secs-security-labels\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/bnb-busd-not-securities-binance-rejects-secs-security-labels\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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