This SEC Move Could Hasten EFT Application for Solana and Other Altcoins
SEC has announced it will no longer pursue its previous stance of classifying certain prominent cryptocurrencies as securities.
The Securities and Exchange Commission (SEC) has made a significant shift in its approach to regulating the cryptocurrency market. In a recent development, the SEC announced it will no longer classify certain prominent cryptocurrencies as securities.
Additionally, this decision marks a departure from the agency’s earlier position, which had targeted a specific group of digital assets, including Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI.
The SEC has notified Binance, a prominent cryptocurrency exchange, of its intention to seek permission to modify its original complaint.
This modification could potentially include “Third-Party Crypto Asset Securities,” as defined in the Motion to Dismiss, Docket Number 172.
The SEC’s objective in seeking this amendment is to address certain crypto assets, specifically SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI, which it currently classifies as securities. This proposed amendment has the potential to alter the classification of these tokens.
Notably, this provides several key insights into the ongoing legal proceedings between the SEC and Binance with its request to amend its court complaints.
According to the source, the SEC plans to seek leave to amend its original complaint and make adjustments to the allegations put forth in the lawsuit.
Furthermore, the inclusion of Third-Party Crypto Asset Securities is expected to shed more light on the classification of altcoins that were previously classified as securities.
SEC Amendment Lower Legal Concerns
The court may not need to immediately rule on the adequacy of the SEC’s original allegations regarding these tokens.
The SEC’s move essentially communicates that further information will be provided, indicating the need for the court to withhold judgment on the merit of the claims based on the existing filings.
Overall, these developments signify that the legal battle between the SEC and Binance is dynamic, with the SEC actively refining and enhancing its case against the cryptocurrency exchange.
