As a seasoned financial analyst with over two decades of experience in traditional and digital asset markets, I find the recent development in the SEC’s lawsuit against Binance particularly intriguing. Having closely followed the evolution of cryptocurrencies since their inception, I have witnessed firsthand the profound impact regulatory classifications can have on project valuations and market sentiment.
The Securities and Exchange Commission (SEC) has made significant changes to its lawsuit against Binance. In this updated complaint, the SEC no longer classifies Solana (SOL) and Cardano (ADA), among other cryptocurrencies, as securities. This modification brings optimistic implications for these digital assets.
Cardano, Solana Are Not Securities
Beginning on June 5, 2023, the SEC filed a complaint against Binance and its US affiliate, BAM Trading Services Inc. The crux of the SEC’s accusations was that these entities had been conducting operations without the essential registrations to function as national securities exchanges, broker-dealers, and clearing agencies in the United States. Consequently, Binance allegedly operated an unregulated trading platform, potentially putting US investors at risk and giving a false impression about the safety and regulatory supervision of their investments.
On July 30th, the American regulatory body made a modification to their legal action regarding “Crypto Asset Securities.” This amendment removes the urgency for the court to decide on the adequacy of the initial accusations pertaining to these digital tokens.
The SEC has announced its plan to ask the court’s permission to modify its lawsuit, particularly with regards to the “Third Party Crypto Asset Securities” mentioned in the SEC’s collective opposition to defendants’ motion to dismiss (Docket No. 172). This means the court won’t need to evaluate the adequacy of the charges against these tokens at this point.
Significantly, the Securities and Exchange Commission (SEC) classified ten digital currencies such as Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI) as securities.
Although the SEC’s decision to reclassify certain tokens could potentially have a positive impact on the market, there hasn’t been any significant response from investors yet. For instance, Solana and Cardano have experienced decreases of 5.5% and 4.5%, respectively, within the last 24 hours. The other cryptocurrencies mentioned in the SEC’s initial complaint have also exhibited minimal market activity, mirroring the prevailing sentiment in the broader crypto market. This shift in sentiment can be attributed to recent unfavorable news regarding Bitcoin, including potential sales of up to 29,800 BTC by the US government.
“DeFi^2 (@DefiSquared), the top-rated cryptocurrency trader on Bybit, expressed his thoughts through X: ‘The market has momentarily paused this advance, but it appears that the news about coins no longer being classified as securities could be quite significant. In the short term, we might see Robinhood resuming listings soon, and in the long run, there’s a higher likelihood of new ETF approvals.’ “
1 Way of Paraphrasing:
At press time, Cardano traded at $0.4015.
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2024-07-30 15:12