The SEC has withdrawn its request for a court ruling to classify tokens like Solana, Cardano, and others as securities.
The U.S. Securities and Exchange Commission (SEC) has decided to drop its claims that several prominent cryptocurrencies are securities in its ongoing lawsuit against Binance.
On July 30, the SEC submitted a response to the court’s minute order on July 9, 2024. The watchdog stated its intention to revise its complaint concerning the “Third Party Crypto Asset Securities” as outlined in its response to Binance’s dismissal motion.
The agency noted that this filing eliminates the need to “issue a ruling as to the sufficiency of the allegations as to those tokens at this time.” This implies that the government agency no longer requests the court to determine whether the affected tokens qualify as securities.
These Crypto Assets Are No Longer Securities: SEC
Recall that in June 2023, the SEC had previously claimed that Binance, one of the world’s largest crypto exchanges, offered unregistered securities through its platform. The lawsuit aimed to hold the crypto exchange accountable for the illicit sale of securities, including a number of widely traded crypto assets.
The affected tokens include Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), Decentraland (MANA), Axie Infinity (AXS), Coti (COTI), and The Sandbox (SAND).
These tokens are part of a more extensive list that the SEC considers securities. The agency claimed that at least 68 tokens were securities.
Trump to Fire SEC Chair
The SEC’s decision to withdraw its request for a ruling comes in the wake of the presidential candidate Donald Trump’s effort to win over pro-crypto voters in the United States.
On July 27, Trump promised to cease the conflict against cryptocurrencies as part of his campaign. Speaking at the Bitcoin 2024 event in Nashville, Tennessee, the former president declared that the US would become the “global leader in crypto.”
Trump also noted that he would fire SEC Chair Gary Gensler on his first day as president and appoint a crypto and Bitcoin presidential advisory council.
