The U.S. Supreme Court has denied Binance’s appeal to overturn a class action lawsuit, a decision that has reverberated across the crypto market. Binance Coin (BNB), the native token of the Binance ecosystem, bore the brunt of this legal blow, dropping to a multi-week low of $660 before partially recovering to $687 at press time.
The ruling underscores the increasing regulatory scrutiny faced by global cryptocurrency exchanges and has left investors questioning the future trajectory of BNB and Binance’s operations.
The Legal Battle in Focus
The case in question dates back to 2020, when a class action lawsuit accused Binance of offering unregistered securities to U.S. investors. Binance initially triumphed in March 2022 when U.S. District Judge Andrew Carter dismissed the lawsuit, citing the exchange’s lack of physical presence in the United States.
However, in a surprising turn, the Manhattan Appeals Court revived the case in 2023. The court argued that Binance, despite lacking a U.S. headquarters, was still subject to U.S. securities laws because American investors accessed the platform via U.S.-based servers.
In December 2024, Binance sought relief from the U.S. Supreme Court, claiming that technological advances had democratized access to international markets, making such lawsuits unnecessary. The Supreme Court’s refusal to hear the appeal has now solidified the Manhattan court’s ruling, allowing the case to proceed.
Market Impact: BNB Price Under Pressure
The Supreme Court’s decision triggered significant volatility in BNB’s price. According to data from Coinglass, $2 million worth of BNB positions were liquidated within 24 hours, with long positions accounting for $1.94 million.
The forced liquidation of long positions added selling pressure, driving BNB’s price downward. Compounding this, funding rates for BNB futures turned negative, indicating a market dominated by bearish sentiment as short traders paid premiums to maintain their positions.
Technical Analysis: Can BNB Rebound?
From a technical standpoint, BNB remains under considerable selling pressure. The Chaikin Money Flow (CMF) indicator dipped into negative territory, reflecting increased capital outflows. Simultaneously, the Average Directional Index (ADX) climbed higher, signaling the strength of the ongoing downtrend.
Despite these bearish signals, BNB continues to trade within a symmetrical triangle pattern, suggesting a potential for a breakout in either direction. A bullish breakout above the 0.5 Fibonacci retracement level at $706 could invalidate the downtrend and drives recovery. Conversely, a breach below the lower trendline could see BNB tumbling toward $510.
Could Regulatory Changes Provide Relief?
A potential catalyst for BNB’s recovery lies in upcoming changes at the U.S. Securities and Exchange Commission (SEC). Reports indicate that SEC Chair Gary Gensler may step down next week, a development that could bring regulatory relief to tokens previously targeted by the agency.
The departure of Gensler, a prominent figure in crypto regulation, might ease the regulatory pressure on Binance and other cryptocurrency projects. However, the market’s reaction to this news will depend on the SEC’s subsequent leadership and its approach to crypto oversight.
Looking Ahead
While Binance’s legal challenges and the Supreme Court’s decision have dealt a blow to BNB, the token’s long-term outlook will depend on multiple factors. These include the resolution of the ongoing lawsuit, broader market sentiment, and the regulatory environment in the U.S. For now, investors are watching closely as BNB navigates its next steps in a volatile and uncertain market.
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