The U.S. Securities and Exchange Commission (SEC) has recently announced its decision to pause allegations that Solana (SOL), Cardano (ADA), and Polygon (MATIC) are unregistered securities. This move comes as part of the ongoing lawsuit against crypto exchange giant Binance, where the SEC has filed a joint status report in the U.S. District Court for the District of Columbia on July 29.
According to the joint response filed by the SEC and Binance, both parties have agreed on a schedule for briefing the motion to amend and related pleadings. The SEC’s motion to amend is due within 30 days of the court’s scheduling order. This agreement could provide temporary relief to SOL, ADA, and MATIC, which have been facing intense scrutiny and possible delistings due to the regulatory uncertainty surrounding the case.
Despite the temporary relief offered by the SEC’s decision to pause allegations, the market reaction has been mixed. On the day of the announcement, SOL saw a drop of over 5%, while ADA and MATIC experienced losses of around 4% and -1%, respectively. This reflects the ongoing uncertainty and volatility surrounding the regulatory status of these tokens.
In addition to the allegations against Solana, Cardano, and Polygon, the SEC has also filed lawsuits against Binance and Coinbase, accusing both exchanges of facilitating the trading of unregistered securities. The lawsuits, which are still pending resolution, also target other tokens such as Dash (DASH), Filecoin (FIL), and NEAR Protocol (NEAR) as potentially unregistered securities.
Disagreement by Solana Foundation and Polygon Labs
Following the SEC’s claims against Solana, Cardano, and Polygon, the Solana Foundation and Polygon Labs publicly disagreed with the SEC’s assessment. Both entities emphasized their commitment to operating outside of U.S. markets and complying with regulatory requirements. However, platforms like Robinhood and Revolut proceeded to delist the tokens targeted by the SEC, despite the public disagreement.
The SEC’s decision to pause allegations against Solana, Cardano, and Polygon offers a temporary reprieve for these assets. However, the regulatory uncertainty and market volatility surrounding the case continue to impact the prices and trading of these tokens. As the SEC moves forward with its lawsuit against Binance and Coinbase, the outcome could have far-reaching implications for the broader crypto market and its participants.
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