The US Securities and Exchange Commission (SEC) has made the decision to amend its original complaint against Binance. This move could potentially eliminate the need for the court to make a ruling on tokens that were previously classified as securities. The SEC’s filing on July 30th reveals that it has informed Binance, its US affiliate, and founder Changpeng Zhao about its intention to amend the complaint, specifically in relation to the ‘Third Party Crypto Asset Securities.’ This adjustment would remove the necessity for the court to issue a ruling on these specific allegations at this point in time.
Shift in SEC’s Approach
The latest filing by the SEC marks a shift in its approach compared to the previous November omnibus opposition. In the previous filing, the SEC argued that Binance had offered and sold various ‘Third Party Crypto Asset Securities,’ including tokens such as Cardano (ADA), Solana (SOL), Filecoin (FIL), and others, as investment contracts. The regulator had claimed that these assets met the criteria to be classified as securities under the Howey test. However, the debate surrounding these tokens intensified during a recent hearing on July 9, when Binance’s legal team contended that Judge Amy Berman Jackson’s ruling implied that these tokens were not included in the SEC case. Judge Jackson clarified that this was not her intention.
Political Strategies and Crypto Regulation
The evolving landscape of crypto regulation in the United States reflects changing political strategies. Former President Donald Trump, on July 27, pledged to remove regulatory barriers on crypto and proposed transforming the country into a global digital asset hub. He also expressed his intention to replace the current SEC Chair, Gary Gensler, and establish a crypto advisory council. In contrast, Democratic lawmakers are pushing for a more progressive approach to digital assets. Additionally, Vice President Kamala Harris’s team is actively working to forge stronger ties with the crypto sector and address any past issues or controversies.
The SEC’s decision to amend its complaint against Binance showcases a significant development in the ongoing legal proceedings. The shifting attitudes towards crypto regulation in the US highlight the impact of political agendas on the framework governing digital assets. It remains to be seen how these changes will influence the crypto industry and shape future regulatory decisions.
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