The U.S. Securities and Exchange Commission (SEC) has retracted its request for a court ruling to classify tokens such as Solana (SOL), Cardano (ADA), and Polygon (MATIC) as securities in its lawsuit against Binance.
The U.S. Securities and Exchange Commission (SEC) has retracted its request for a court ruling to classify tokens such as Solana (SOL), Cardano (ADA), and Polygon (MATIC) as securities in its lawsuit against Binance. This decision marks a significant shift in the SEC’s approach toward regulating these digital assets.
On July 30, the SEC responded to the court’s minute order from July 9, 2024, indicating its intention to amend the complaint concerning “Third Party Crypto Asset Securities.” This amendment means the SEC will no longer pursue a court ruling on whether the tokens mentioned in its lawsuit against Binance are securities. This development signals a significant change in the agency’s stance, as it no longer seeks judicial determination on the status of these tokens at this time.
Tokens Initially Targeted by the SEC
In its lawsuit against Binance, the SEC had identified several tokens as securities, including 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 list is part of a broader set of tokens the SEC believes to be securities. In June 2023, the SEC alleged that at least 68 tokens were securities, affecting over $100 billion worth of assets in the crypto market.
Changing Perspectives on Cryptocurrency in the US
The SEC’s decision to withdraw its request aligns with broader shifts in the US political landscape regarding cryptocurrency. Presidential candidates from both major parties are making efforts to appeal to pro-crypto voters.
On July 27, former president and current candidate Donald Trump pledged to end the “war on crypto” as part of his campaign. Speaking at the Bitcoin 2024 conference in Nashville, Tennessee, Trump promised that the US would become the “crypto capital of the planet.” He also stated his intention to dismiss SEC Chair Gary Gensler on his first day in office and form a crypto and Bitcoin presidential advisory council to promote the growth of the digital asset sector.
Similarly, on the same day, Democratic members of the US House of Representatives urged their party to adopt a “forward-looking approach” to blockchain and digital assets. Following this, advisers to Vice President Kamala Harris, also a presidential candidate, reached out to crypto companies to mend the party’s relationship with the crypto industry.
