KEYTAKEAWAYS
- SEC retracts request for court to classify certain tokens as securities.
- Move affects tokens like SOL, ADA, MATIC, and others named in Binance lawsuit.
CONTENT
In a surprising move, the U.S. Securities and Exchange Commission has withdrawn its request for a court ruling on classifying tokens like Solana, Cardano, and Polygon as securities in its lawsuit against Binance.
The United States Securities and Exchange Commission (SEC) has made a significant shift in its approach to cryptocurrency regulation. On July 30, 2024, the agency filed a response to the court’s minute order from July 9, indicating its intention to amend the complaint regarding “Third Party Crypto Asset Securities” in its ongoing lawsuit against crypto exchange Binance.
This development marks a notable change in the SEC’s stance, as it no longer seeks a court ruling to determine whether certain tokens named in the Binance lawsuit should be classified as securities. The affected tokens include prominent cryptocurrencies such as Solana (SOL), Cardano (ADA), Polygon (MATIC), and several others.
The SEC’s original complaint against Binance had claimed that several tokens were securities, including BNB, Binance USD (BUSD), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and Coti (COTI). This list was part of a broader group of at least 68 tokens that the SEC believed to be securities, impacting over $100 billion worth of cryptocurrencies in the market.
The agency’s decision to withdraw its request for a ruling on these tokens’ status comes amidst a changing political landscape in the United States. Presidential candidates from both major parties are increasingly courting pro-crypto voters, signaling a potential shift in regulatory attitudes towards digital assets.
Former President Donald Trump, now a Republican Party candidate, recently pledged to end the “war on crypto” as part of his election campaign. Speaking at the Bitcoin 2024 conference in Nashville, Tennessee, Trump promised to make the US the “crypto capital of the planet” and stated his intention to fire SEC Chair Gary Gensler on his first day in office.
>> Also read: Trump’s Bitcoin Conference Speech Summary: A Turning Point for Crypto in American Politics
On the Democratic side, party members in the U.S. House of Representatives have signed a letter calling for a “forward-looking approach” to blockchain and digital assets. In response, advisers to Vice President Kamala Harris, a presidential candidate, have reportedly reached out to crypto companies in an effort to mend the party’s relationship with the industry.
>> Also read: Harris Campaign Reaches Out to Crypto Industry, Seeking Reset
As the regulatory landscape continues to evolve, this move by the SEC could potentially signal a more nuanced approach to cryptocurrency regulation in the United States. However, the long-term implications of this decision remain to be seen, and stakeholders in the crypto industry will be closely watching for further developments.
>> Also read: 2024 U.S. Crypto Regulation and Market Impact Analysis
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