Binance Pushes Securities Lawsuit to Arbitration Amid Growing Crypto Legal Pressures, Bitcoin Tax Ruling Emerges

Binance, the world’s largest cryptocurrency exchange, continues to fight a US class-action securities lawsuit by seeking arbitration, referencing its 2019 Terms of Use, which include a binding arbitration clause and waiver of group litigation. This comes after a federal judge only partially granted Binance’s earlier request, with further disputes over the effective timeline of the arbitration clause. While the class-action was dismissed in 2022, it was revived by a federal appeals court in 2024, and the Supreme Court declined to intervene in 2025. This legal battle follows Binance’s high-profile $4.3 billion settlement with the US SEC in late 2023, further intensifying regulatory scrutiny on the exchange. Simultaneously, Coinbase faces investigations from the DOJ and SEC following a major data breach, leading to up to $400 million in user losses and multiple lawsuits. In Australia, a precedent-setting court decision classifies Bitcoin as money rather than property, signaling potential significant changes in crypto tax policy and the prospect of up to AUD 1 billion in tax refunds, possibly setting a global standard. These developments highlight rising legal uncertainty and regulatory risk for major crypto exchanges, with possible impacts on compliance standards, investor confidence, and market practices worldwide. Crypto traders should closely monitor evolving terms of service, regulatory actions, and legal precedents as they can directly influence trading environments and user protections.