🌎 SEC Pauses Allegations on Solana, Cardano, Polygon in Binance Case

The U.S. SEC has decided to pause its allegations that the native crypto assets of Solana, Cardano, and Polygon are unregistered securities in its ongoing lawsuit against Binance.

The U.S. Securities and Exchange Commission has indicated its intention to pause allegations that Solana, Cardano, and Polygon are unregistered securities. The SEC filed a joint status report in the U.S. District Court for the District of Columbia, dated July 29, revealing plans to amend its complaint against the crypto exchange giant Binance, including changes to “third party crypto asset securities.” This move could offer temporary relief to the mentioned assets, which have been under intense scrutiny and faced delistings from trading platforms due to the case and implied regulatory uncertainty.

According to the joint response, the SEC and Binance have agreed on a schedule for briefing the motion to amend and related pleadings, with the SEC’s motion to amend due within 30 days of the court’s scheduling order. For now, investors in SOL, ADA, and MATIC can breathe a tentative sigh of relief, although the judge may still need to rule on whether these tokens should be deemed securities in the U.S.

Despite the news, SOL is down over 5% on the day, while ADA and MATIC saw 24-hour losses of around 4% and 1% respectively, according to data from crypto sources.

In June 2023, the SEC filed lawsuits against Binance and Coinbase, accusing the exchanges of facilitating the trading of unregistered securities. In these lawsuits, both of which have yet to be resolved, the financial watchdog stated that other tokens such as Dash, Filecoin, and NEAR Protocol should be classified as securities as well.

Following the SEC’s claims, the Solana Foundation and Polygon Labs publicly disagreed with the SEC’s assessment, emphasizing their commitment to operating outside of U.S. markets. Despite their stance, platforms like Robinhood and Revolut proceeded to delist the tokens targeted by the SEC.