- The SEC withdrew the Binance lawsuit’s request to classify ADA, MATIC, and SOL as securities.
- Affected tokens include ADA, MATIC, SOL, BNB, BUSD, etc.
- The shift in the SEC’s stance comes after growing political support for cryptocurrencies in the United States.
In a notable shift in regulatory stance, the U.S. Securities and Exchange Commission (SEC) has withdrawn its request for a court ruling to classify certain cryptocurrencies, including Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL, as securities amid ongoing litigation over cryptocurrencies. Request to exchange to Binance.
This development marks a significant change in the SEC’s approach to classifying these digital assets.
The SEC Withdraws Request to Classify ADA, MATIC, and SOL as Securities
On July 30, 2024, the U.S. Securities and Exchange Commission (SEC) responded to the court minutes released on July 9, 2024. Tripartite Crypto Asset Securities’ complaint opposes Binance’s motion to dismiss. By withdrawing this request, the SEC effectively eliminated the need for a judicial ruling on whether these tokens should currently be classified as securities.
While the immediate coins affected by this withdrawal are ADA, MATIC, and SOL, other well-known cryptocurrencies such as Binance Coin (BNB), Binance USD (BUSD), Cosmos (ATOM), The Sandbox (SAND), Decentraland ( MANA), Axie Infinity (AXS) and COTI are also impacted.
The SEC’s Shift Reflects Evolving Political Support for Cryptocurrencies
The SEC’s change in stance appears to be influenced by recent political developments. U.S. presidential candidates increasingly express pro-crypto sentiments, influencing regulatory attitudes. Former President Donald Trump campaigned on a promise to end the so-called “crypto wars” and expressed his intention to replace SEC Chairman Gary Gensler with a more crypto-friendly figure. Meanwhile, members of the Democratic Party advocate a more progressive approach to digital assets.
This change underscores the broader, evolving narrative of U.S. attitudes toward cryptocurrency regulation, reflecting a growing awareness of the industry’s importance and potential.
