The U.S. SEC is no longer seeking a court verdict to classify ten crypto assets, including Solana and Cardano, as securities in the Binance lawsuit.
According to a court filing today, the securities agency wants to make certain amendments to its complaint in response to the court’s minute order on July 9, 2024.
The amendment involves modifying the complaint with respect to the “Third Party Crypto Asset Securities,” as outlined in its response to Binance’s motion to dismiss.
Notably, the SEC stated that the proposed amendment eliminates the need for the court to rule on the adequacy of the allegations relating to the tokens right now. This suggests that the regulatory agency is no longer seeking a court ruling to classify third-party tokens as securities.
Parties Proposed Joint Schedule for Amendment
Consequently, the SEC and Binance proposed a briefing schedule relating to the agency’s amendment motion.
The regulator seeks to officially file its amendment motion within 30 days after the court enters the scheduling order. Binance will then file its response to the motion 30 days later. The parties also proposed that the SEC file its reply no later than 21 days thereafter.
SEC Labels Cardano, Solana, and Other Tokens Securities
Recall that the SEC charged Binance with violating federal securities laws in June 2023. In its lawsuit, the government agency labeled several tokens listed on Binance as securities.
They included Cardano (ADA), Solana (SOL), The Sandbox (SAND), Polygon (MATIC), and Axie Infinity (AXS). Other tokens labeled as securities are Binance USD (BUSD), Binance Coin (BNB), Decentraland (MANA), Coti (COTI), and Cosmos (ATOM). However,
The aforementioned tokens are part of a more extensive list of crypto assets the SEC has classified as securities. As of June 2023, the list of crypto assets with the securities tag spiked to 68, including Mirror Protocol mAssets.
U.S. Politicians Vie for Crypto Support
interestingly, earlier this month, the SEC dropped its investigation into Paxos over the firm’s possible securities laws violations through the issuance of BUSD. The move suggested that the agency does not see BUSD as an unregistered security.
Meanwhile, the latest development comes as U.S. politicians, especially presidential candidates, attempt to gain the support of the crypto industry. Former U.S. President Donald Trump of the Republican Party has recently vied for the industry’s support.
During the recently concluded Bitcoin Conference, Trump promised to sack SEC Chair Gary Gensler on his first day as president. Several crypto enthusiasts see Gensler as one individual stifling the industry’s growth.
With Trump being the preferred candidate among crypto enthusiasts, the Democratic Party has been making moves to woo this category of voters in the upcoming election.
In a July 26 letter, members of the House of Representatives from the Democratic Party urged the party to adopt a forward-thinking approach to blockchain and crypto.
Responding to the letter, advisers to Democratic presidential candidate Kamala Harris called on crypto companies to mend the strained relationship between the industry and the party.
A few days later, the SEC has now announced that it is no longer interested in classifying Cardano and Solana as securities. It remains to be seen whether this request is part of the Democratic Party’s initiative to woo crypto voters.
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