The US Securities and Exchange Commission (SEC) has modified its lawsuit against Binance, the leading global crypto exchange.
The revision notably removes Solana (SOL), Cardano (ADA), and Filecoin’s (FIL) classification as a security. This legal adjustment is part of an action originally filed in June 2023.
Solana Price Action Remains Tepid
The SEC accused Binance of numerous violations of federal securities laws.
Previously, the SEC had alleged that several digital assets traded on Binance, including Solana, Filecoin, and Cardano, were effectively securities. The broader list of tokens that were under scrutiny also included:
- Binance Coin (BNB),
- Binance USD (BUSD),
- Polygon (MATIC),
- Cosmos (ATOM),
- SandBox (SAND),
- Decentraland (MANA),
- Algorand (ALGO),
- Axie Infinity (AXS), and
- COTI (COTI)
These are among the 67 tokens the SEC has previously categorized as securities, affecting over $100 billion in the crypto market.
The recent response to the court’s minute order dated July 9, 2024, outlines that the SEC seeks to amend its stance concerning the “Third Party Crypto Asset Securities” outlined in its opposition to Binance’s motion to dismiss. This alteration in the SEC’s approach removes the immediate necessity for the court to determine if the implicated tokens meet the securities criteria.
The decision may signal a significant shift in how certain cryptocurrencies are viewed and regulated within the United States. It might bring clarity to the regulatory environment surrounding many altcoins, which occupies a gray area between utility and security. Moreover, it might open up doors for the approval of the next exchange-traded fund (ETF).
Community members celebrate the SEC’s amendments. They give various optimistic price targets for Solana.
“Solana to $1,000 easily lol,” Yelo said.
Despite the positive news, the reaction in the cryptocurrency market has been subdued. Currently, Solana is trading at around $182, marking a decline of 5.51% over the last 24 hours. Other altcoins have also displayed a muted price performance.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
Furthermore, the implications of the SEC’s refined legal approach extend beyond just Binance. This case is likely to influence broader market regulatory frameworks for crypto assets worldwide.
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