Bitrabo Editorial
The US Securities and Exchange Commission (SEC) has made a significant change in its lawsuit against Binance, impacting Solana (SOL) and Cardano (ADA). The amendment involves reclassifying ten cryptocurrencies, including Solana and Cardano, which were previously considered securities in the SEC’s legal action against Binance and its former CEO, Changpeng Zhao.
Solana and Cardano Cleared as Non-Securities
The original complaint filed on June 5, 2023, targeted Binance and its US affiliate, BAM Trading Services Inc., accusing them of operating without required registrations as national securities exchanges, broker-dealers, and clearing agencies. This lack of registration allegedly allowed Binance to operate an unregulated trading platform, exposing US investors to risks and misleading them on security and regulatory oversight.
In a recent update on July 30, the SEC amended its complaint related to “Crypto Asset Securities,” removing the need for immediate ruling on allegations concerning these tokens.
The SEC stated, “The SEC intends to amend its Complaint, specifically regarding the ‘Third Party Crypto Asset Securities.'” This eliminates the need for the court to evaluate the sufficiency of allegations related to those tokens at this stage.
Initially, the SEC had identified ten cryptocurrencies, including Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), and others, as securities.
Despite the positive implications of this change, the market has not shown a significant reaction yet. The prices of Solana and Cardano have seen a slight decline, along with other mentioned cryptocurrencies. The broader market sentiment, influenced by recent negative news about Bitcoin, may have contributed to this.
A prominent crypto trader, DeFi^2 (@DefiSquared), noted that the news has potential short-term benefits like potential relisting on Robinhood and improved chances for new ETF approvals in the long run.
The Cboe has requested SEC approval for asset managers VanEck and 21Shares to launch a Solana-based ETF. This request aims to list these products pending regulatory approval.
Currently, Cardano is trading at $0.4015.
