SEC Revises Stance on Cryptocurrencies Amid Ongoing Binance Lawsuit
The U.S. Securities and Exchange Commission (SEC) has recently revised its approach, moving away from labeling cryptocurrencies as “securities” in a September 12 court filing.
This shift comes amid the SEC’s legal dispute with Binance, which is accused of dealing in unregistered securities.
The SEC previously identified various crypto assets, including Solana, Cardano, and Polygon, as securities. However, the agency now says its earlier terminology was misleading and will use more precise language in the future. The SEC clarified that the term “crypto asset securities” was intended to describe the context and agreements surrounding these assets, not the assets themselves.
Despite this clarification, the SEC argues that Binance’s tokens still constitute investment contracts, maintaining that the exchange is in breach of securities laws. This stance is consistent with the SEC’s approach in a similar case against Kraken.
READ MORE: Crypto Market Sentiment Misguided, Bright Future Ahead, Says Top Analyst
The SEC’s updated position follows its recent approval of Bitcoin and Ethereum ETFs, which are treated under commodity fund regulations. This has sparked criticism from figures like Paul Grewal of Coinbase, who questions the SEC’s inconsistent regulatory stance.
There is also increasing pressure on U.S. regulators for clearer guidelines on cryptocurrency and decentralized finance (DeFi) compliance.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
