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SEC and Binance agree on legal timeline amid dispute.
Key Takeaways
SEC redefines crypto securities in Binance lawsuit. Due to the impending amendment, the court will postpone its decision on the sufficiency of the original allegations regarding these securities. <?xml encoding="UTF-8"?>The US Securities and Exchange Commission (SEC) is seeking to amend its complaint against Binance Holdings, Binance.US, and Binance’s former CEO Changpeng Zhao, according to a filing dated July 30. The specific changes will involve redefining “third party crypto asset securities,” potentially including Solana (SOL).
Both parties have agreed on a timeline for the amended complaint and subsequent legal responses, although they remain at odds over initiating discovery on previously survived claims pending the amendment’s resolution.
The SEC previously identified 10 coins as securities in its lawsuit against Binance, including Filecoin (FIL), Algorand (ALGO), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS) and COTI (COTI).
Getting rid of the need to prove Solana and similar tokens are securities could ease regulatory pressure on these coins.
The move could be a positive catalyst for spot Solana exchange-traded funds (ETFs). Recently, VanEck and 21Shares filed for ETF tied to Solana.
Many experts, however, believe there is a very low chance the SEC will accept these applications.
BlackRock’s Head of Digital Assets, Robert Mitchnick, said although spot Ethereum Spot ETFs were launched last week, they are unlikely to pave the way for other crypto ETFs.
This is a developing story. We’ll give updates on the situation as we learn more.
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