SEC Retracts Demand to Classify Tokens as Securities in Binance Lawsuit

The SEC has retracted its request for a court ruling on whether tokens like SOL and ADA are securities in its lawsuit against Binance. This marks a shift in strategy as they aim to amend their complaint. Meanwhile, political sentiments around crypto are evolving, with both major parties showing signs of increased support for the industry.

In a significant turn of events, the U.S. Securities and Exchange Commission (SEC) has dropped its demand for the court to classify various tokens as securities in its ongoing lawsuit against Binance. Filed on July 30, the SEC’s latest response indicates a shift in strategy. Instead of pressing the court to rule on whether tokens like Solana and Cardano can be classified as securities, the agency aims to amend its complaint regarding what it calls “Third Party Crypto Asset Securities” as it addresses Binance’s motion to dismiss.

The change means that the SEC won’t seek a legal determination on the compliance of these tokens just yet. Notably, the tokens initially tagged as securities in the case include Binance’s own BNB and Binance USD, alongside industry heavyweights like Solana (SOL), Cardano (ADA), Polygon (MATIC), and several others—all part of a more extensive list the SEC had previously put forward. Back in June 2023, the agency had argued that over 68 tokens could be securities, which carries hefty implications for the market, valued at over $100 billion.

This retraction by the SEC comes amid shifting political tides regarding cryptocurrency in the U.S. Recently at the Bitcoin 2024 conference in Nashville, former President Donald Trump expressed his intent to end what he termed a “war on crypto.” Trump’s proposals include firing SEC Chair Gary Gensler and establishing a presidential advisory council focused on crypto and Bitcoin. He passionately branded the U.S. as the potential “crypto capital of the planet,” signaling a major industry shift if he returns to office.

Meanwhile, on the Democratic front, lawmakers are now advocating for a more progressive approach to blockchain and digital assets. On the same day as Trump’s declarations, Democrats in the House of Representatives signed a letter suggesting that it’s time for the party to embrace new technologies in the space. Search for clearer regulations and collaborations with crypto firms is heating up, as officials associated with Vice President Kamala Harris reached out to industry stakeholders to mend the party’s relationship with the crypto sector.

This evolving stance from both parties signals a potential pivot in how crypto regulations could be shaped in the future as both legislators and presidential candidates look to connect with an increasingly important voter base.

The SEC has notably amended its approach in the Binance lawsuit, stepping back from classifying several cryptocurrencies as securities as it prepares for a change in complaint strategy. Amidst this legal maneuvering, both political parties in the U.S. are recalibrating their views on cryptocurrency. Whether it’s Trump’s radical promise to embrace crypto or the Democrats’ call for modernization, the political landscape is clearly shifting. This could have significant long-term effects on crypto regulation in America.

Original Source: cointelegraph.com