SEC Revises Complaint Against Binance: Solana No Longer Classified as Security

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The U.S. Securities and Exchange Commission (SEC) has decided to revise its complaint in the lawsuit against Binance, removing Solana (SOL) from its list of securities. This legal adjustment could signal a shift in the regulatory landscape for certain cryptocurrencies. The decision follows recent court rulings that have already impacted the classification of other crypto assets.

SEC Exclude Solana From Security Statues

The SEC’s lawsuit against Binance, Binance.US, and co-founder Changpeng Zhao originally included several third-party crypto assets as securities. However, the SEC announced plans to modify its complaint in a joint status response filed in the U.S. District Court for the District of Columbia on July 30. 

This change removes the classification of Solana as a security, aligning with the court’s earlier order stating that BNB and BUSD secondary sales are not securities.

The SEC noted that there is no immediate need for the court to rule on the security status of these crypto tokens, marking a shift in their legal strategy. This modification provides partial relief for assets such as Solana (SOL), Cardano (ADA), and Polygon (MATIC), which were initially included in the SEC’s complaint.

Change In Regulatory Approach

The SEC’s decision to remove Solana from its list of securities could signal a broader change in how cryptocurrencies are perceived and regulated in the U.S.  This may provide clarity for Solana, which has long existed in a regulatory gray area. The change might also pave the way for new opportunities, such as a Solana exchange-traded fund (ETF).

The parties involved have agreed on a proposed schedule for briefing on the motion to amend and related pleadings, with deadlines set within 30 days.

Community and Market Reactions

The crypto community has largely welcomed the SEC’s amendments, with some members expressing optimism about Solana’s future. There are various price targets for Solana, with some speculating it could reach $1,000 soon. 

However, the overall reaction in the cryptocurrency market has been muted, with Solana currently trading at approximately $183, reflecting a decline of 4.71% over the past 24 hours.

As the situation unfolds, the SEC’s revised stance may influence future regulatory approaches and market dynamics for Solana and other cryptocurrencies.