In a recent turn of events, the US Securities and Exchange Commission (SEC) has withdrawn a court ruling request seeking to label tokens, such as Solana, Cardano, and Polygon, among others, as securities in the ongoing Binance lawsuit.
In response to the court order dated July 9, 2024, the SEC announced its intentions to modify its complaint related to “Third Party Crypto Asset Securities” on July 30. The commission has determined that it is not currently necessary to “issue a ruling as to the sufficiency of the allegations as to those tokens.” This decision effectively drops the request for a court judgment to identify the tokens in question as securities.
Tokens implicated in this lawsuit include Binance USD (BUSD), Binance Coin (BNB), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and Coti (COTI). These are, however, only a portion of a larger array of tokens the SEC contends are securities, which extends to around 68 tokens, impacting over $100 billion of cryptocurrencies in the market.
The change of stance by the SEC aligns with the trend among US presidential contenders to appeal to crypto enthusiasts among US voters. Former President Donald Trump has pledged to end the ongoing ‘war on crypto’ during his election campaign and expressed his intentions to establish the US as the global capital of cryptocurrency.
In addition, the Democratic Party is reportedly considering embracing a more progressive stance towards blockchain technology and digital assets. Adapting to the changing scenario, advisers of current Vice President Kamala Harris have initiated discussions with cryptocurrency firms to restore the party’s relations with the cryptocurrency industry.