diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6907104f19..43a940efa0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -56,6 +56,9 @@ This project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.htm
 - Fix reversed order of account updates when using `TokenContract.approveAccountUpdates()` https://github.com/o1-labs/o1js/pull/1722
 - Fixed the static `check()` method in Struct classes to properly handle inheritance, preventing issues with under-constrained circuits. Added error handling to avoid using Struct directly as a field type. https://github.com/o1-labs/o1js/pull/1707
 - Fixed that `Option` could not be used as `@state` or event https://github.com/o1-labs/o1js/pull/1736
+- Address potential incorrect token inheritance handling with `MayUseToken` in AccountUpdates https://github.com/o1-labs/o1js/pull/1716
+  - Modified isParentsOwnToken() to return false when inheritFromParent is true, preventing potential misuse of token inheritance.
+  - Added check() method to ensure parentsOwnToken and inheritFromParent flags are not both set to true simultaneously.
 
 ## [1.4.0](https://github.com/o1-labs/o1js/compare/40c597775...ed198f305) - 2024-06-25
 
diff --git a/src/bindings b/src/bindings
index df8c87ed68..9c9c2051a5 160000
--- a/src/bindings
+++ b/src/bindings
@@ -1 +1 @@
-Subproject commit df8c87ed6804465f79196fdff84e5147ae71e92d
+Subproject commit 9c9c2051a5d93e51b6846f0a0826c3d82a8a076b
diff --git a/src/lib/mina/account-update.ts b/src/lib/mina/account-update.ts
index 46b889129e..bbf73fcece 100644
--- a/src/lib/mina/account-update.ts
+++ b/src/lib/mina/account-update.ts
@@ -39,6 +39,7 @@ import { Memo } from '../../mina-signer/src/memo.js';
 import {
   Events as BaseEvents,
   Actions as BaseActions,
+  MayUseToken as BaseMayUseToken,
 } from '../../bindings/mina-transaction/transaction-leaves.js';
 import { TokenId as Base58TokenId } from './base58-encodings.js';
 import {
@@ -131,8 +132,6 @@ type AuthRequired = Types.Json.AuthRequired;
 type AccountUpdateBody = Types.AccountUpdate['body'];
 type Update = AccountUpdateBody['update'];
 
-type MayUseToken = AccountUpdateBody['mayUseToken'];
-
 type Events = BaseEvents;
 const Events = {
   ...BaseEvents,
@@ -158,6 +157,32 @@ const Actions = {
   },
 };
 
+type MayUseToken = BaseMayUseToken;
+const MayUseToken = {
+  type: BaseMayUseToken,
+  No: {
+    parentsOwnToken: Bool(false),
+    inheritFromParent: Bool(false),
+  },
+  ParentsOwnToken: {
+    parentsOwnToken: Bool(true),
+    inheritFromParent: Bool(false),
+  },
+  InheritFromParent: {
+    parentsOwnToken: Bool(false),
+    inheritFromParent: Bool(true),
+  },
+  isNo: ({
+    body: {
+      mayUseToken: { parentsOwnToken, inheritFromParent },
+    },
+  }: AccountUpdate) => parentsOwnToken.or(inheritFromParent).not(),
+  isParentsOwnToken: (accountUpdate: AccountUpdate) =>
+    accountUpdate.body.mayUseToken.parentsOwnToken,
+  isInheritFromParent: (mayUseToken: AccountUpdate) =>
+    mayUseToken.body.mayUseToken.inheritFromParent,
+};
+
 /**
  * Either set a value or keep it the same.
  */
@@ -675,6 +700,7 @@ class AccountUpdate implements Types.AccountUpdate {
 
   static Actions = Actions;
   static Events = Events;
+  static MayUseToken = MayUseToken;
 
   constructor(body: Body, authorization?: Control);
   constructor(body: Body, authorization: Control = {}, isSelf = false) {
@@ -1171,7 +1197,10 @@ class AccountUpdate implements Types.AccountUpdate {
   static empty() {
     return AccountUpdate.dummy();
   }
-  static check = Types.AccountUpdate.check;
+  static check = (au: AccountUpdate) => {
+    Types.AccountUpdate.check(au);
+    Types.MayUseToken.check(au.body.mayUseToken);
+  };
   static fromFields(fields: Field[], [other, aux]: any[]): AccountUpdate {
     let accountUpdate = Types.AccountUpdate.fromFields(fields, aux);
     return Object.assign(
@@ -1204,34 +1233,6 @@ class AccountUpdate implements Types.AccountUpdate {
     return Provable.witnessAsync(combinedType, compute);
   }
 
-  static get MayUseToken() {
-    return {
-      type: provablePure({ parentsOwnToken: Bool, inheritFromParent: Bool }),
-      No: { parentsOwnToken: Bool(false), inheritFromParent: Bool(false) },
-      ParentsOwnToken: {
-        parentsOwnToken: Bool(true),
-        inheritFromParent: Bool(false),
-      },
-      InheritFromParent: {
-        parentsOwnToken: Bool(false),
-        inheritFromParent: Bool(true),
-      },
-      isNo({
-        body: {
-          mayUseToken: { parentsOwnToken, inheritFromParent },
-        },
-      }: AccountUpdate) {
-        return parentsOwnToken.or(inheritFromParent).not();
-      },
-      isParentsOwnToken(a: AccountUpdate) {
-        return a.body.mayUseToken.parentsOwnToken;
-      },
-      isInheritFromParent(a: AccountUpdate) {
-        return a.body.mayUseToken.inheritFromParent;
-      },
-    };
-  }
-
   /**
    * Returns a JSON representation of only the fields that differ from the
    * default {@link AccountUpdate}.
diff --git a/src/lib/mina/account-update.unit-test.ts b/src/lib/mina/account-update.unit-test.ts
index fca2d0490a..28c64d1a46 100644
--- a/src/lib/mina/account-update.unit-test.ts
+++ b/src/lib/mina/account-update.unit-test.ts
@@ -6,6 +6,7 @@ import {
   Mina,
   Int64,
   Types,
+  Bool,
 } from '../../index.js';
 import { Test } from '../../snarky.js';
 import { expect } from 'expect';
@@ -20,6 +21,14 @@ function createAccountUpdate() {
   return accountUpdate;
 }
 
+function createAccountUpdateWithMayUseToken(
+  mayUseToken: AccountUpdate['body']['mayUseToken']
+) {
+  let accountUpdate = AccountUpdate.defaultAccountUpdate(address);
+  accountUpdate.body.mayUseToken = mayUseToken;
+  return accountUpdate;
+}
+
 // can convert account update to fields consistently
 {
   let accountUpdate = createAccountUpdate();
@@ -122,3 +131,67 @@ function createAccountUpdate() {
     'Check signature: Invalid signature on fee payer for key'
   );
 }
+
+// correctly identifies parentsOwnToken and not inheritFromParent
+{
+  let accountUpdate = createAccountUpdateWithMayUseToken({
+    parentsOwnToken: Bool(true),
+    inheritFromParent: Bool(false),
+  });
+  expect(
+    AccountUpdate.MayUseToken.isParentsOwnToken(accountUpdate).toBoolean()
+  ).toEqual(true);
+  expect(
+    AccountUpdate.MayUseToken.isInheritFromParent(accountUpdate).toBoolean()
+  ).toEqual(false);
+}
+
+// correctly identifies inheritFromParent and not parentsOwnToken
+{
+  let accountUpdate = createAccountUpdateWithMayUseToken({
+    parentsOwnToken: Bool(false),
+    inheritFromParent: Bool(true),
+  });
+  expect(
+    AccountUpdate.MayUseToken.isParentsOwnToken(accountUpdate).toBoolean()
+  ).toEqual(false);
+  expect(
+    AccountUpdate.MayUseToken.isInheritFromParent(accountUpdate).toBoolean()
+  ).toEqual(true);
+}
+
+// throws an error when both flags are true in check method
+{
+  expect(() => {
+    AccountUpdate.MayUseToken.type.check({
+      parentsOwnToken: Bool(true),
+      inheritFromParent: Bool(true),
+    });
+  }).toThrowError(
+    'MayUseToken: parentsOwnToken and inheritFromParent cannot both be true'
+  );
+}
+
+// throws an error when both flags are true in AccountUpdate.check method
+{
+  let accountUpdate = createAccountUpdateWithMayUseToken({
+    parentsOwnToken: Bool(true),
+    inheritFromParent: Bool(true),
+  });
+  expect(() => {
+    AccountUpdate.check(accountUpdate);
+  }).toThrowError(
+    'MayUseToken: parentsOwnToken and inheritFromParent cannot both be true'
+  );
+}
+
+// correctly identifies when neither flag is set
+{
+  let accountUpdate = createAccountUpdateWithMayUseToken({
+    parentsOwnToken: Bool(false),
+    inheritFromParent: Bool(false),
+  });
+  expect(AccountUpdate.MayUseToken.isNo(accountUpdate).toBoolean()).toEqual(
+    true
+  );
+}