- SEC’s redefinition of “Third Party Crypto Asset Securities” may include Solana, impacting crypto regulation significantly.
- The SEC’s shift could affect the regulatory status of tokens like Solana, influencing future crypto ETF approvals.
- Disagreements on discovery timelines in the Binance case may delay progress, impacting the broader crypto market.
The U.S. Securities and Exchange Commission (SEC) has moved to amend its complaint against Binance Holdings, Binance.US, and former CEO Changpeng Zhao. This update, filed on July 30, 2024, introduces a shift in how certain cryptocurrencies are classified. The SEC intends to redefine what it calls “Third Party Crypto Asset Securities,” which could include tokens like Solana (SOL). This development may alter the landscape of crypto asset regulation and influence market dynamics.
The SEC’s new filing aims to address concerns previously raised about the sufficiency of its allegations against these tokens. By seeking to redefine the “Third Party Crypto Asset Securities,” the SEC hopes to streamline the legal process.
This move could potentially render unnecessary a court ruling on the allegations against certain tokens. The SEC’s complaint initially identified ten cryptocurrencies as securities. Further noted by Colin Wu, these included Filecoin (FIL), Algorand (ALGO), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS) and COTI (COTI).
The reclassification proposed by the SEC could significantly impact how these cryptocurrencies are viewed under U.S. securities law. However, the filing does not explicitly suggest abandoning the argument that these tokens are securities. Instead, it aims to refine the legal arguments and classifications involved. This step indicates that while the SEC is revising its approach, it remains committed to its stance on the regulatory status of these digital assets.
In addition to this legal maneuver, the SEC and the defendants have agreed on a timeline for the amended complaint. However, they are at odds over the initiation of discovery for claims that have survived so far. This disagreement could affect the pace and progress of the ongoing legal battle. If the SEC decides to drop its claims that tokens like Solana are securities, it might positively influence the broader crypto market. Specifically, it could pave the way for new types of crypto exchange-traded funds (ETFs).
Solana Defeats Binance Coin And Secures 4th Position In Terms of Market Cap
Recently, VanEck and 21Shares have filed for spot Solana ETFs in the U.S. market. This move suggests growing interest in crypto assets beyond Bitcoin and Ethereum. BlackRock’s Head of Digital Assets, Robert Mitchnick, has noted that the recent launch of spot Ethereum ETFs might not lead to a broader acceptance of other crypto ETFs. He suggests that the SEC’s stance may still limit the growth of crypto ETFs to Bitcoin and Ethereum only.
