The US Securities and Exchange Commission (SEC) seeks to modify its lawsuit against Binance to avoid a court ruling on the security status of third-party tokens like Solana. In a July 29 court filing, the SEC requested permission to amend its original complaint, aiming to defer any decision on these tokens’ security status.
The SEC accused Binance of breaching federal securities laws by listing tokens such as Solana, Cardano, and Polygon, which it argued met the Howey Test criteria for securities. However, a recent federal court ruling stated that secondary sales of digital assets like BNB do not qualify as securities, marking a setback for the SEC.
This move could leave these tokens’ legal status uncertain but avoids direct classification as securities. Binance objected to starting discovery until reviewing the SEC’s proposed amendments, accusing the agency of misrepresentation.
The outcome of this lawsuit could have significant long-term implications for the regulatory landscape of digital assets, influencing how they are treated under securities laws.
