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SEC Seeks to Amend Binance Complaint, Removing Tokens Like Solana – DL News
- SEC May Remove Third-Party Tokens From Binance Case
- The regulator and the exchange have filed a joint plan to pursue their case.
Is Solana a guarantee?
This question has plagued cryptocurrency industry experts, regulators, and politicians for years.
Perhaps the Securities and Exchange Commission was hoping to get a ruling on this issue in its lawsuit against Binance.
However, the regulator has apparently decided to amend its complaint against the cryptocurrency exchange to exclude aspects related to third-party securities.
A plan filed jointly from the SEC and Binance to a Washington court says that, if approved, the regulator will amend its complaint.
This means that this court may not have to consider whether SOL (and other tokens, including Cardano and Polygon) fall under its regulatory protection.
The question of whether cryptocurrencies are securities or not is at the center of attention SEC Chairman Gary Gensler argues that the agency should be the primary regulator of the cryptocurrency industry.
The market watchdog has launched a flurry of enforcement actions against cryptocurrency heavyweights over the years, including Binance, Monetary base AND The Kraken — claiming to have violated safety laws.
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The case
The SEC sued Binance in June 2023 on securities law violations and fraud charges.
Along with the complaint, the SEC attached a list of 10 tokens, including Solana, the world’s third-largest cryptocurrency, that the regulator has defined as securities.
Binance asked The court moved to dismiss the case, but Judge Amy Berman Jackson said the bulk of the case should proceed.
The SEC has a lot at stake in its lawsuit against Binance.
Despite three U.S. government departments settling allegations with Binance last November, resulting in a $4.3 billion fine, Gensler and the SEC have opted out of the deal.
Instead, the SEC has maintained its case against the world’s leading cryptocurrency exchange and its former CEO, Changpeng Zhao.
The SEC filed a similar lawsuit against Coinbase the same week it filed its lawsuit against Binance, also adding a token list to that lawsuit.
The drivers of the cryptocurrency market
- Bitcoin is down 4.3% in the last 24 hours and is trading at $66,473.
- Ethereum is down 0.5% and is trading at $3,337.
What are we reading?
Joanna Wright is DL News’ regulatory correspondent. Email joanna@dlnews.com.