The US Securities and Exchange Commission (SEC) has recently announced its plans to amend its original complaint against Binance. This move could potentially eliminate the necessity for the court to make a decision on tokens that were previously deemed as securities. The joint filing, which occurred on July 30th, comes at a time when there is a heightened effort by presidential candidates to appeal to pro-crypto voters in the United States. In this filing, the SEC has informed Binance, its US affiliate, and Changpeng Zhao of its intention to amend the complaint, specifically regarding the ‘Third Party Crypto Asset Securities.’ This would prevent the court from having to rule on these particular allegations for now.
The SEC’s latest filing signifies a change in approach compared to their November omnibus opposition. In that previous opposition, the SEC asserted that Binance had offered and sold various ‘Third Party Crypto Asset Securities,’ such as Cardano (ADA), Solana (SOL), Filecoin (FIL), Polygon (MATIC), and others, as investment contracts. The regulator argued that these assets met the criteria to be classified as securities under the Howey test. The debate on these tokens escalated during a hearing on July 9 when Binance’s legal team contended that Judge Amy Berman Jackson’s June 28 ruling suggested that these tokens were excluded from the SEC case. However, the judge clarified that this was not her intention.
Recent developments in the United States reflect evolving political strategies concerning cryptocurrencies. Former President Donald Trump, on July 27, pledged to remove regulatory barriers on crypto and proposed turning the country into a global digital asset hub. He also expressed his intention to replace SEC Chair Gary Gensler and create a crypto advisory council. On the other hand, Democratic lawmakers are pushing for a more progressive approach to digital assets. Additionally, Vice President Kamala Harris’s team is actively working to strengthen ties with the crypto sector and mend the relationship that has been strained over the years.
The SEC’s decision to amend its complaint against Binance is a significant development in the ongoing debate over the classification of certain tokens as securities. The political landscape in the United States is also playing a crucial role in shaping the attitude towards cryptocurrencies and digital assets. It remains to be seen how these factors will continue to influence the regulatory environment and the crypto industry as a whole.