In a significant development for the cryptocurrency industry, the US Securities and Exchange Commission (SEC) has revised its lawsuit against Binance, the world’s leading crypto exchange. The updated legal action, initially filed in June 2023, notably excludes Solana (SOL), Cardano (ADA), and Filecoin (FIL) from being classified as securities.
Previously, the SEC had alleged that several digital assets traded on Binance, including Solana, Filecoin, and Cardano, constituted securities under federal laws. This was part of a broader scrutiny that included a wide range of tokens such as Binance Coin (BNB), Binance USD (BUSD), Polygon (MATIC), Cosmos (ATOM), SandBox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI (COTI). These assets were among 67 tokens categorized as securities by the SEC, affecting a substantial portion of the crypto market valued at over $100 billion.
The SEC’s recent move, outlined in a court response dated July 9, 2024, reflects a shift in its stance regarding the “Third Party Crypto Asset Securities” mentioned in its opposition to Binance’s motion to dismiss. By removing the classification of Solana, Cardano, and Filecoin as securities, the SEC has altered its approach, which may influence future regulatory decisions and the broader legal landscape for cryptocurrencies.
This adjustment could signal a pivotal change in how certain cryptocurrencies are regulated in the United States. It may bring more clarity to the often ambiguous boundary between utility and security for many altcoins, potentially paving the way for new developments such as the approval of the next exchange-traded fund (ETF).
The amendment has been met with optimism within the cryptocurrency community. Some enthusiasts are even projecting significant price targets for Solana, with comments like “Solana to $1,000 easily lol” circulating in online forums.
Despite the positive legal news, the market reaction has been relatively muted. Solana is currently trading around $182, reflecting a 5.51% decline over the past 24 hours. Other altcoins have also shown subdued performance, indicating that the market is still digesting the implications of the SEC's revised stance.
July 2024, Cryptoniteuae