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SEC Drops Claims That SOL, ADA, MATIC, Other Tokens Are Securities in Binance Case – Blockchain News, Opinion, TV & Jobs
On July 30, the SEC filed a response to a July 9 court order, saying it was modifying its complaint regarding the “Third Party Crypto Asset Securities” cited in its opposition to Binance’s motion to dismiss. This means the SEC is no longer seeking a court order on whether the affected tokens are securities.
What are titles?
A security token is the blockchain equivalent of a securitized asset traded on the stock market. Securities are subject to rigorous regulatory oversight to protect investors and ensure fair market practices. If a cryptocurrency is classified as a security, it must comply with these regulations, which may include disclosure requirements, registration with the SEC, and ongoing reporting obligations.
Tokens involved
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In its original lawsuit against Binance, the SEC 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 is part of a larger claim that includes at least 68 tokens, impacting over $100 billion in cryptocurrency.
Neil Roarty, investment platform analyst Stockoliticscommented on the SEC’s latest move regarding cryptocurrency:
“A number of cryptocurrencies have bounced on news that the U.S. Securities and Exchange Commission (SEC) has withdrawn its request to the courts to determine whether some popular tokens should be considered securities. XRP gained seven percent in the hours immediately following the announcement, while Solana’s SOL cryptocurrency rose five percent.
“The move doesn’t mean these cryptocurrencies are out of the woods, but it does suggest a softening of the SEC’s approach, and traders appear to be optimistic that settlements can be reached. An SEC securities ruling is seen as a death knell for most cryptocurrencies, as it would bury the tokens under mountains of regulatory compliance obligations and make it nearly impossible for casual traders to purchase.”
Changing Perspective on Cryptocurrencies in the United States
The SEC’s decision comes at a time of shifting political sentiment on cryptocurrencies. Former President Donald Trump recently announced his intention to end the “war on cryptocurrency” as part of his election campaign. He promised to make the United States the “crypto capital of the world” and mentioned plans to fire SEC Chairman Gary Gensler and establish a presidential advisory council on cryptocurrencies and Bitcoin.
Meanwhile, members of the Democratic Party are also reconsidering their stance on digital assets. A group of House representatives urged the party to take a progressive approach to blockchain and digital assets. In response, Vice President Kamala Harris’s advisers reached out to cryptocurrency firms to repair ties with the industry.
This shift in political sentiment reflects the growing importance of cryptocurrencies in the United States and the evolving regulatory landscape.