SEC Plans To Amend Binance Complaint, Removing Immediate Need For Ruling On Token Securities Status
In Brief
SEC notified Binance of its intention to seek permission to amend its Complaint, including “Third Party Crypto Asset Securities.”
The United States Securities and Exchange Commission (SEC) notified the cryptocurrency exchange Binance of its intention to seek permission to amend its Complaint. This amendment encompasses the inclusion of “Third Party Crypto Asset Securities” as outlined in the Motion to Dismiss, Dkt. No. 172. This move eliminates the immediate need for the Court to rule on the adequacy of the current allegations regarding the tokens.
This may affect the necessity for a court decision on whether tokens like SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, as well as COTI qualify as securities.
Previously, the SEC asserted that outlined digital assets traded on Binance should be classified as securities. The agency argued that these assets satisfy the Howey test criteria, which defines securities as investment contracts. The move to exclude these assets from the securities designation could indicate a change in the perception and regulation of certain cryptocurrencies in the United States, potentially leading to greater clarity in the regulatory landscape.
This legal adjustment is part of a case initially filed in June 2023. The new filing was made in response to the court’s order on July 9th, which directed the SEC and Binance to meet, discuss, and file a joint submission by July 29th. This submission is expected to outline a suggested schedule for further proceedings, including a timeline for any motion to amend the complaint, as specified in the minute order.
SEC Decision On ConsenSys’s Ethereum 2.0 Signals Positive Shift In Cryptocurrency Regulation
Securities and commodities are distinct financial instruments in the United States, each regulated by different government agencies. For cryptocurrencies, determining whether a digital asset qualifies as one of these financial instruments has significant implications for its sale, listing, and potential legal actions if the issuer fails to comply with regulations.
Recently, the SEC also finalized its investigation into ConsenSys’s Ethereum 2.0, indicating that it will not pursue charges related to the sales of ETH being classified as securities. This outcome is seen as a positive development for Ethereum builders, technology providers, and other industry players, suggesting an improving regulatory environment for their activities.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
