The US Securities and Exchange Commission (SEC) has recently announced its plans to amend its original complaint against Binance. This move by the SEC could potentially eliminate the need for a court ruling on tokens that were previously classified as securities. The joint filing by the SEC and Binance comes at a time when presidential candidates in the United States are making efforts to attract pro-crypto voters.
The latest filing by the SEC represents a shift in the regulator’s approach compared to its previous omnibus opposition. In the November filing, the SEC claimed that Binance offered and sold several ‘Third Party Crypto Asset Securities’ such as Cardano (ADA), Solana (SOL), Filecoin (FIL), Polygon (MATIC), Algorand (ALGO), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI. The regulator argued that these assets qualify as securities under the Howey test.
The debate over the classification of these tokens heightened during a hearing on July 9 when Binance’s lawyers argued that Judge Amy Berman Jackson’s ruling implied that these tokens were excluded from the SEC case. However, the judge clarified that this was not her intention, leading to further uncertainty regarding the classification of these assets.
The recent developments in the United States’ attitude towards cryptocurrencies reflect evolving political strategies. Former President Donald Trump, on July 27, pledged to ease regulatory constraints on crypto and proposed making the country a global digital asset hub. He also expressed intentions to replace SEC Chair Gary Gensler and establish a crypto advisory council. On the other hand, Democratic lawmakers are advocating for a progressive stance on digital assets, while Vice President Kamala Harris’s team is focused on strengthening connections with the crypto sector and repairing years of damage done to the industry.
The SEC’s decision to amend its complaint against Binance is a significant development in the ongoing debate over the classification of crypto assets. The intertwining of legal proceedings with political agendas highlights the complex nature of regulating the cryptocurrency industry in the United States. As the landscape continues to evolve, it remains to be seen how these developments will shape the future of digital assets in the country.
