TLDR
- The SEC has modified its lawsuit against Binance, removing Solana, Cardano, and Filecoin’s classification as securities.
- The SEC no longer needs a court ruling to prove allegations on certain crypto assets at this time.
- This change comes after a court order stating that BNB is not a security.
- The crypto market’s reaction to this news has been subdued, with Solana’s price declining despite the positive development.
- The SEC and Binance have different proposals regarding the discovery process in the ongoing lawsuit.
The U.S. Securities and Exchange Commission (SEC) has recently modified its lawsuit against Binance, the world’s largest cryptocurrency exchange.
This change has caught the attention of the crypto community, particularly because it involves the reclassification of several popular cryptocurrencies.
In a significant shift, the SEC has removed Solana (SOL), Cardano (ADA), and Filecoin (FIL) from its list of assets classified as securities in the Binance case.
This adjustment is part of a larger legal action that was initially filed in June 2023, where the SEC accused Binance of violating federal securities laws.
The lawsuit originally targeted a broader list of cryptocurrencies, including Binance Coin (BNB), Binance USD (BUSD), Polygon (MATIC), Cosmos (ATOM), and others. In total, the SEC had previously categorized 67 tokens as securities, affecting over $100 billion in the crypto market.
This recent change comes in response to a court order dated July 9, 2024. The SEC now seeks to amend its position on what it calls “Third Party Crypto Asset Securities.”
As a result, the court no longer needs to determine whether these tokens meet the criteria for securities, at least for now.
The move follows a court order stating that Binance Coin (BNB) is not a security, and that secondary sales of Binance USD (BUSD) are also not securities.
This development could have far-reaching implications for how certain cryptocurrencies are viewed and regulated within the United States.
Despite this seemingly positive news for the affected cryptocurrencies, the market reaction has been surprisingly muted. Solana, for instance, was trading at around $182 at the time of reporting, showing a decline of 5.51% over 24 hours. Other altcoins have also displayed minimal price movement in response to the news.
The SEC’s decision to amend its complaint was not disclosed to Binance until late on July 29, according to the exchange.
Binance suggests that the SEC may be planning amendments beyond just the claims concerning third-party tokens. This late disclosure has led to disagreements about the discovery process in the ongoing lawsuit.
Binance claims that the SEC added new language falsely stating that both parties had agreed to start the discovery process after the SEC files a proposed amended complaint.
However, Binance states that they were unwilling to agree to this without first reviewing the SEC’s proposed changes.
The implications of this case extend beyond just Binance and the specifically mentioned cryptocurrencies. It’s likely to influence broader regulatory frameworks for crypto assets worldwide.
