SEC to Amend Binance Complaint, Affecting Status of Tokens Like SOL, MATIC

Binance Solana US SEC

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk and Bitcoin Magazine.

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Last updated:

July 30, 2024 03:47 EDT

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The U.S. Securities and Exchange Commission (SEC) is updating its complaint against Binance, shifting its focus away from proving certain tokens such as SOL and MATIC are securities.

In the recent filing, the SEC said: “The SEC informed Defendants that it intends to seek leave to amend its Complaint, including with respect to the “Third Party Crypto Asset Securities” as defined in the SEC’s Omnibus Opposition to Defendants’ Motion to Dismiss, Dkt. No. 172, obviating the need for the Court to issue a ruling as to the sufficiency of the allegations as to those tokens at this time.”

The adjustment to the filing comes following a crackdown on the cryptocurrency exchange and its founder, Changpeng Zhao (CZ). Binance has faced allegations of violating securities laws by offering unregistered securities and failing to comply with regulatory requirements.

In 2023, the U.S. SEC alleged that Binance in particular listed 10 tokens that it viewed as securities in its lawsuit against exchange. This included SOL, ADA, MATIC, FIL, ATOM, SAND, MANA.

Earlier this month, a federal judge convened a hearing for the SEC’s case against Binance after publishing a ruling on Binance’s motion to dismiss the SEC lawsuit.

This latest change to the filing is a joint response and will require both parties to make a decison on how to move forward.