The US Securities and Exchange Commission (SEC) is planning to amend its complaint against Binance in order to eliminate the need for the court to decide on tokens that were previously classified as securities. This joint filing comes at a time when there is increased competition among presidential candidates to attract pro-crypto voters in the United States.
The SEC’s filing on July 30th reveals that it has notified Binance, its US affiliate, and founder Changpeng Zhao of its intention to amend the complaint, particularly with regards to the ‘Third Party Crypto Asset Securities.’ This move will negate the need for a court ruling on these allegations at this time. The SEC stated that it intends to seek leave to amend its complaint, including with respect to the Third Party Crypto Asset Securities as defined in the SEC’s Omnibus Opposition to Defendants’ Motion to Dismiss.
This latest filing represents a change in the SEC’s approach compared to the November omnibus opposition, where the securities regulator claimed that Binance offered and sold several Third Party Crypto Asset Securities such as Cardano (ADA), Solana (SOL), Filecoin (FIL), Polygon (MATIC), and others, as investment contracts. The regulator argued that these assets qualify as securities under the Howey test. The debate over these tokens intensified during a July 9 hearing, where Binance’s lawyers argued that Judge Amy Berman Jackson’s ruling implied these tokens were excluded from the SEC case.
In terms of political strategies, there have been recent shifts in the United States’ attitudes towards crypto. Former President Donald Trump, on July 27, vowed to end regulatory constraints on crypto and proposed making the country a global digital asset hub. He also vowed to replace SEC Chair Gary Gensler and establish a crypto advisory council. On the other hand, Democratic lawmakers are advocating for a progressive stance on digital assets, with Vice President Kamala Harris’s team working to strengthen connections with the crypto sector and repair years of damage.
Overall, it is clear that the SEC’s move to amend its complaint against Binance reflects a changing landscape in the crypto industry, with political figures from both parties vying for support from pro-crypto voters. The debate over the classification of tokens as securities remains ongoing, but the SEC’s latest filing could potentially streamline the process and avoid a lengthy court battle. As the crypto sector continues to evolve, it will be interesting to see how these political and regulatory developments shape the future of digital assets in the United States.
