SEC Drops Immediate Ruling on Crypto Tokens in Binance Case

YEREVAN (CoinChapter.com) — The United States Securities and Exchange Commission (SEC) has withdrawn its request to classify certain tokens as securities

The United States Securities and Exchange Commission (SEC) has withdrawn its request to classify certain tokens as securities in the lawsuit against Binance.

On July 30, the SEC responded to the court’s minute order from July 9, 2024. The SEC’s filing stated that it seeks to amend its complaint concerning the “Third Party Crypto Asset Securities.”

Initially, the SEC aimed to have the court determine whether tokens like Solana (SOL), Cardano (ADA), and Polygon (MATIC) were securities. This classification would have required these tokens to follow stricter regulations. However, the recent filing indicates that the SEC no longer seeks an immediate ruling on this matter.

The tokens in question include Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and Coti (COTI). This change in the SEC’s approach affects these specific tokens within the broader case.

The SEC’s decision to withdraw the request concerning specific tokens suggests a shift in how they may approach cryptocurrency regulation.

In June 2023, the SEC identified at least 68 tokens as securities, impacting more than $100 billion in the cryptocurrency market.

The initial lawsuit against Binance highlighted the SEC’s concern over the status of these tokens. The withdrawal of this specific request alters the immediate legal landscape for these assets.

Trump and Democrats Shift Stances on Crypto, Promising Industry Support

On July 27, former President Donald Trump expressed strong support for the cryptocurrency industry. Speaking at the Bitcoin 2024 conference in Nashville, Tennessee, he vowed to “end the war on crypto.”

Trump also announced plans to make the US the “crypto capital of the planet.” Additionally, he mentioned his intention to replace SEC Chair Gary Gensler and establish a presidential advisory council focused on crypto and Bitcoin.

Meanwhile, Democratic views on crypto are also evolving. On the same day, Democratic members of the US House of Representatives signed a letter. They urged the party to adopt a “forward-looking approach” to blockchain and digital assets.

Following this, advisers to presidential candidate and Vice President Kamala Harris reached out to crypto companies. They aimed to repair the party’s relationship with the crypto industry.