2024-07-30
Previously, SEC requested a court ruling to
classify many tokens traded on Binance as securities.
In its lawsuit against Binance to the court, the SEC identified several cryptocurrencies as securities. The
tokens specifically named in the SEC's case against Binance include:
•
Cosmos (ATOM)
•
Binance Coin (BNB)
•
Binance USD (BUSD)
•
COTI (COTI)
Additionally, the SEC named other
tokens in its lawsuits against Coinbase, some of which are also traded on
Binance. These tokens include:
•
Solana (SOL)
•
Cardano (ADA)
•
Polygon (MATIC)
•
Filecoin (FIL)
•
The Sandbox (SAND)
•
Decentraland (MANA)
•
Algorand (ALGO)
•
Axie Infinity (AXS)
These designations have significant
implications, as labeling these tokens as securities could lead to them being
delisted from U.S. exchanges and subject to stricter regulatory requirements.
On July 29, 2024, the U.S. Securities
and Exchange Commission’s (SEC) has amended its lawsuit against Binance, the
world’s largest cryptocurrency exchange by trading volume, and is no longer
alleging that Binance offered third-party securities in contravention of U.S.
laws.
This amendment follows a U.S. federal
court ruling that cryptocurrencies and secondary sales of the BNB token do not
qualify as securities.
The SEC’s lawsuit had previously
categorized a list of tokens, including SOL (Solana), ADA (Cardano), MATIC
(Polygon), FIL (Filecoin), ATOM (Cosmos), SAND (The Sandbox), MANA
(Decentraland), ALGO (Algorand), AXS (Axie Infinity), and COTI (COTI), as securities.
These are what the SEC called “Third Party Crypto Asset Securities”.
On July 29, 2024, the U.S. Securities
and Exchange Commission (SEC) has dropped its charges against “Third Party
Crypto Asset Securities” for a court ruling to classify these tokens as
securities.
The decision to drop security claims
for these cryptocurrencies, particularly Solana, is likely to imply that SEC is
lower its tough stance on cryptocurrency regulations.
