SEC Amends Filing in Binance Case

The crypto community is confused by the U.S. Securities and Exchange Commission (SEC)'s recent amendment to filing in the Binance case, by which the commission altered the securities status of crypto assets like Solana (SOL), Cardano (ADA), and Polygon (MATIC).

Many in the crypto community perceived that the agency would drop charges against these third-party tokens.

Early Tuesday, the SEC filed a notice indicating its intention to amend its complaint against Binance. The filing suggested that the SEC might not pursue charges against third-party tokens. Yet, this perceived backtrack has led to different interpretations.

Ripple's Chief Legal Officer, Stuart Alderoty, quickly cautioned the community against premature celebrations.

Ripple's Legal Perspective

Crypto has sought precise regulation in the U.S. for years. The lack of clarity has led to a clash with the country's regulators. With the SEC's recent move, some experts have tried to clarify what the Binance case amendment means for SOL, ADA, and others.

Ripple's Adleroty took to X (formerly Twitter) to discuss a misinterpretation. He noted that the SEC's position needs to be more consistent. Moreover, he assured that the ten tokens listed in the amendment are still "left out to dry in the Coinbase suit."

SEC's Inconsistent Position

"When a judge signals B.S. on the SEC's claim that ten tokens on Binance are securities, the SEC says, 'Never mind,'" Adleroty said. This isn't how to regulate," he added. Additionally, Ripple CEO Brad Garlinghouse said the filing is "more evidence of SEC hypocrisy."

The filing does not settle the issue for Solana, Cardano, and other third-party tokens. It is more specific to the Binance conflict. The SEC I indicated that it would not try to prove the security status of these tokens within the Binance case.

Continued Uncertainty

The move needs to provide the clarity many hoped for. Indeed, it only creates more confusion. The market is left uncertain about the security status of these assets, and institutional participation will be limited until that is resolved.

The recent amendment by the SEC in the Binance case has led to widespread confusion rather than clarity. While the filing suggested a potential backtrack on charging third-party tokens like SOL, ADA, and MATIC, experts like Ripple's Stuart Alderoty argue that the situation remains unresolved.

The crypto market continues to await definitive regulatory guidelines crucial for broader institutional adoption.