SEC Requests Complaint Amendment

In the latest development in the U.S. SEC lawsuit against Binance, Binance.US, and co-founder Changpeng Zhao, the government agency requested the court amend its complaint.

The filing came in response to a district court order denying crypto exchange Kraken's motion to dismiss in the SEC v. Payward case. The agency regrets using the term crypto asset securities and agrees that ten tokens are not securities.

District Court Filing

The U.S. Securities and Exchange Commission (SEC) has submitted a motion for leave to amend the original complaint regarding crypto asset securities in the latest District Court of Columbia filing in SEC vs. Binance.

The regulator has provided: The proposed amended complaint (PAC). A redline comparing the PAC to the original complaint. The order denied the defendants' motion to dismiss in the Kraken vs. SEC lawsuit.

Binance must file either an opposition or a notice of their consent to the SEC's request by October 11 this year. The SEC will continue its regulation by enforcement approach to assert control over the crypto industry.

Coinbase CLO Speaks Out

Coinbase Chief Legal Officer (CLO) Paul Grewal took to X and shared a footnote in the SEC's proposed amended complaint against Binance.

He pointed out that **"The SEC regrets any confusion it may have invited" by falsely and repeatedly stating that ten tokens, including SOL, ADA, and MATIC, are securities.

Grewal mentioned Ripple CLO Stuart Alderoty in the post, citing a notable shift in the SEC's approach or clarification regarding the term "crypto asset securities."

Ripple's Challenge

Recently, Ripple CLO challenged regulators' thinking against crypto concerning money laundering. Paul Grewal noted that ETH has somehow escaped the SEC's scrutiny, but the ten tokens have not avoided the regulator's nuanced approach towards crypto.

The agency will continue alleging that the ten crypto assets are sold in secondary markets and as investment contracts.

Future Implications

The SEC's latest moves indicate that the regulatory landscape for crypto assets still needs to be settled. The potential amendment to the complaint against Binance could set a precedent for handling other crypto cases.

It remains to be seen how Binance will respond by the October 11 deadline and what this means for the broader crypto industry.

"The SEC regrets any confusion it may have invited by falsely and repeatedly stating that ten tokens, including SOL, ADA, and MATIC, are securities in themselves."