- SEC retracts request to classify Solana, Cardano, and Polygon as securities in Binance lawsuit, focusing on other legal aspects.
- Political pressure and election promises, like Trump’s pro-crypto stance, may have influenced the SEC’s decision to amend its complaint.
- SEC’s withdrawal impacts over $100 billion in cryptocurrencies, signaling a possible regulatory shift in the crypto market.
The U.S. Securities and Exchange Commission (SEC) has decided not to pursue its request for the court to classify certain tokens as securities in its lawsuit against crypto exchange Binance.
SEC Amends Complaint
On July 30, 2024, the SEC filed a response to the court’s July 9 minute order. The SEC informed the court of its plan to amend its complaint concerning the “Third Party Crypto Asset Securities.” This action aims to avoid the need for the court to rule on whether these tokens are securities. By amending its complaint, the SEC seeks to streamline the legal process and focus on other aspects of the case.
Tokens in Question
In its original lawsuit against Binance, the SEC claimed that several tokens, including Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), and Polygon (MATIC), were securities.
The list also included tokens like Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and Coti (COTI). These tokens were part of a larger group that the SEC had previously identified as securities, affecting over $100 billion worth of cryptocurrencies.
Implications for the Crypto Market
The SEC’s decision to amend its complaint may have significant implications for the crypto market. It signals a potential shift in the regulatory approach towards cryptocurrencies. This move comes amid increasing efforts by presidential candidates to appeal to pro-crypto voters. For instance, former President Donald Trump recently pledged to end the regulatory “war on crypto” if re-elected. He promised to make the U.S. the “crypto capital of the planet” and to appoint a pro-crypto advisory council.
Political Influence
The timing of the SEC’s decision is noteworthy, as it coincides with political maneuvers to gain support from the crypto community. Trump’s promises include firing SEC Chair Gary Gensler and appointing a new chairman to get a more crypto-friendly environment. This political backdrop may have influenced the SEC’s decision to ease its stance on certain tokens.
