SEC seeks to amend Binance lawsuit to avoid ruling on SOL’s security status

The US Securities and Exchange Commission (SEC) is seeking to modify its ongoing suit against Binance to debar a tribunal determination connected the information presumption of third-party tokens similar Solana.

In a associated July 29 tribunal filing, the SEC requested support to amend its archetypal ailment against the crypto trading platform, stating that it aims to debar a tribunal ruling connected the “Third Party Crypto Asset Securities” referenced successful the case.

The projected amendment seeks to defer immoderate tribunal ruling connected these tokens’ information status. If granted, it would efficaciously region the SEC from classifying these assets arsenic securities, but they would stay taxable to regulatory uncertainty regarding their ineligible status.

Third-party coins are integer assets issued by entities different than Binance that were listed connected its platform. Last year, the SEC accused Binance of breaching national securities laws by listing autochthonal tokens of Solana, Cardano, Polygon, Cosmos, Filecoin, and Algorand, arguing that these tokens met the Howey Test criteria for securities.

However, the SEC’s lawsuit encountered a setback past period erstwhile a US national tribunal ruled that the secondary income of integer assets similar the BNB token bash not suffice arsenic securities.

Meanwhile, crypto assemblage members connected societal media person interpreted the SEC’s filing arsenic further indications that integer assets similar SOL and ADA bash not suffice arsenic securities and are unfairly targeted by the fiscal watchdog’s regulation-by-enforcement approach.

Binance’s effect to the SEC

In response, Binance stated it would not hold to statesman find until it had reviewed the SEC’s projected amended complaint. The steadfast argued that starting find connected perchance amended claims was premature.

It stated:

“Until Defendants person a acceptable of projected amended allegations successful beforehand of them, it is premature and unreasonable for the SEC to expect them to hold to behaviour merits find for claims connected which the SEC whitethorn soon question permission to amend its allegations.”

The speech besides noted that the SEC had lone precocious disclosed the amendment connection and accused the bureau of misrepresenting their statement connected the find timeline.

The station SEC seeks to amend Binance suit to debar ruling connected SOL’s information status appeared archetypal connected CryptoSlate.