The SEC and Binance have reached an agreement on the legal timeline amid their ongoing dispute. As part of the lawsuit, the SEC is seeking to redefine certain crypto assets, including Solana, as securities.
This development will lead to a postponement of the court’s decision on the adequacy of the original allegations related to these securities, due to the forthcoming amendment.
SEC Seeks to Amend Complaint Against Binance, Redefining Crypto Securities
The US Securities and Exchange Commission (SEC) has filed a request to amend its complaint against Binance Holdings, Binance.US, and former CEO Changpeng Zhao, as of July 30. The proposed amendments aim to redefine certain “third-party crypto asset securities,” which could include Solana (SOL).
Both the SEC and Binance have agreed on a timeline for addressing the amended complaint and subsequent legal responses. However, they remain in disagreement over the initiation of discovery for previously sustained claims while the resolution of the amendment is pending.
SEC Targets Solana in Binance Lawsuit: ETF Impact
In its lawsuit against Binance, the SEC previously identified ten coins as securities, including Filecoin (FIL), Algorand (ALGO), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI).
Redefining or removing the requirement to prove that Solana and similar tokens are securities could alleviate some of the regulatory pressures on these cryptocurrencies. This shift might serve as a positive catalyst for spot Solana exchange-traded funds (ETFs), with VanEck and 21Shares recently filing for ETFs linked to Solana.
Experts Doubt SEC Approval for New Crypto ETFs
Many experts believe that the likelihood of the SEC accepting recent cryptocurrency ETF applications is quite low. Despite the recent launch of spot Ethereum ETFs, Robert Mitchnick, BlackRock’s Head of Digital Assets, has stated that these developments are unlikely to pave the way for approval of additional crypto ETFs.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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