Key points
- SEC Plans to Redefine Crypto Securities in Binance Lawsuit.
- Because of the impending amendment, the court will postpone its decision on the sufficiency of the original allegations regarding these safeguards.
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The U.S. Securities and Exchange Commission (SEC) is seeking to amend its complaint against Binance Holdings, Binance.US, and former Binance CEO Changpeng Zhao, according to a joint statement. presentation dated July 30, 2024. Specific changes will involve the redefinition of “third-party cryptoasset securities,” potentially including Solana (SOL).
“The SEC has informed Defendants that it intends to seek leave to amend its Complaint, including with respect to “Third-Party Cryptographic Asset Securities” as defined in the SEC’s Omnibus Opposition to Defendants’ Motion to Dismiss, Dkt. No. 172, obviating the need for the Court to issue a ruling on the sufficiency of the allegations as to those tokens at this time,” the filing wrote.
The SEC previously identified 10 coins as securities in its complaint against Binance, including Filecoin (FIL), Algorand (ALGO), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI).
While the recent legal document suggests a possible shift in its stance on crypto-asset securities, there is no explicit indication that the agency plans to abandon its argument that these tokens are securities.
As noted, the SEC and defendants agreed to a schedule for the amended complaint and subsequent legal proceedings. answers, although They remain at odds over whether to begin discovery of claims that have previously survived pending resolution of the amendment.
If the SEC decides to fire Their claims that SOL and other tokens in their lawsuit against Binance are securities could be a positive catalyst for cryptocurrency exchange-traded funds (ETFs) tied to altcoins beyond Ethereum. Recently, VanEck and 21Shares filed a lawsuit Solana place ETFs in the US
However, experts believe that the SEC will not accept ETFs for cryptocurrencies other than Bitcoin and Ethereum.
BlackRock's head of digital assets, Robert Mitchnick, said that although Ethereum spot ETFs launched last week, they are unlikely to pave the way for other cryptocurrency ETFs.
This is a developing story. We will provide updates on the situation as we learn more.
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