SEC and Binance Set Legal Timeline Amid Dispute
Key Takeaways:
- The SEC is planning to redefine crypto securities in its lawsuit against Binance.
- Due to this amendment, the court will delay its decision on whether the original allegations about these securities are sufficient.
In a joint filing dated July 30, 2024, the U.S. Securities and Exchange Commission (SEC) has requested to amend its complaint against Binance Holdings, Binance.US, and Binance’s former CEO Changpeng Zhao. The proposed changes involve redefining “third-party crypto asset securities,” which may include Solana (SOL).
The filing notes, “The SEC has informed Defendants of its intention to seek leave to amend its Complaint, particularly regarding the ‘Third Party Crypto Asset Securities’ as outlined in the SEC’s Omnibus Opposition to Defendants’ Motion to Dismiss. This request aims to address the need for a court ruling on the sufficiency of the allegations related to these tokens at this time.”
Read more: If elected president of the United States, RFK Jr. will buy 4 million Bitcoin
The SEC previously identified ten cryptocurrencies as securities in its lawsuit 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).
Although the recent filing suggests a potential shift in the SEC’s stance on crypto asset securities, there is no clear indication that the agency intends to abandon its position that these tokens qualify as securities.
The SEC and the defendants have agreed on a timeline for the amended complaint and subsequent legal responses. However, they are still disputing the commencement of discovery on claims that have previously survived, pending the resolution of the amendment.
If the SEC decides to drop its claims that SOL and other tokens are securities, it could positively impact crypto exchange-traded funds (ETFs) linked to altcoins beyond Ethereum. Recently, VanEck and 21Shares have filed for spot Solana ETFs in the U.S.
Despite this, experts believe the SEC will continue to resist approving crypto ETFs beyond Bitcoin and Ethereum. BlackRock’s Head of Digital Assets, Robert Mitchnick, mentioned that while spot Ethereum ETFs have been launched, they are unlikely to lead to the approval of other crypto ETFs.
David Ma was born in 1980 in California, is a Vietnamese American, known as one of the entrepreneurs and investors in the field of cryptocurrency and stock market. In 2006, he graduated from Stanford University with honors and began his career in business.
Email: [email protected]
