US SEC Withdraws Claims that ADA, SOL, And MATIC Are Securities in the Binance Lawsuit

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The SEC has backed down on its push to classify Cardano, Polygon, Solana, and a few other tokens as securities following the Binance lawsuit.

On July 30, the regulator submitted a letter responding to a July 9 court minute order, seeking to modify its complaints about “Third Party Crypto Asset Securities” in its case against Binance.

The regulator had defined its “Third Party Crypto Asset” complaints to resist Binance’s motion to dismiss the unregistered securities allegation. 

SEC’s New Proposal Following Binance Lawsuit

The SEC said amending its complaints will eliminate the need to determine the sufficiency of the allegations about the token’s legal status. This suggests the commission no longer wants the court to decide whether the outlined tokens are securities. 

In its June 2023 lawsuit against crypto exchange Binance, the SEC claimed that nearly a dozen digital assets qualify as securities. These tokens include Binance USD (BUSD), BNB, Cosmos (ATOM), Polygon (MATIC), Coti (COTI), and Solana (SOL). 

Other cryptocurrencies affected include the Sandbox (SAND), Cardano (ADA), Axie Infinity (AXS), and Decentraland (MANA). These digital assets are part of the numerous tokens the agency believes should be subject to securities laws under its oversight. 

Last year, the US SEC claimed that most cryptocurrencies (at least 68) were securities. This assertion affected over $100 billion of cryptocurrencies in the crypto market. 

However, with the latest development, the SEC might re-evaluate its claims.

A Growing Acceptance of Crypto in the United States

The SEC’s request to retract its claims over cryptocurrencies follows attempts by US presidential candidates to gain support from pro-crypto voters.

Former US President Trump has pledged commitment to cultivating a crypto-friendly atmosphere for cryptocurrencies in the US if elected president. His pro-crypto stance has earned him support from various crypto industry leaders and stakeholders.

Moreover, Donald Trump reiterated his stance on crypto during the 2024 Bitcoin conference in Nashville on Saturday, July 27. During his speech, Trump promised to end anti-crypto policies once he assumes the presidency.

The Republican presidential candidate said he will turn the United States into the world’s crypto capital. 

That’s not all; Trump also said he would fire US SEC chairman Gary Gensler on his first day as president. He also said he would appoint a new SEC Chairman to help build the future of America and not block it.

Further, former President Donald Trump promised to set up a Bitcoin and crypto presidential advisory council. 

Besides Trump, the Democratic Party candidate is shifting to a more pro-crypto stance. On July 27, some Democrats in the US House of Reps endorsed a letter calling for a friendly approach to digital assets and blockchain technology. 

In response, the incumbent US Vice President Kamala Harris and her campaign advisers contacted crypto companies. They extended a hand of friendship, seeking to amend the party’s relationship with the crypto industry.