The crypto market was left floored when the US Securities and Exchange Commission (SEC) recently amended a filing in the Binance case, altering the securities status of crypto assets like Solana (SOL), Cardano (ADA), and Polygon (MATIC). Yet, there are some experts who have pointed out that the development may be misinterpreted.
Early Tuesday, a filing showed the SEC’s intention to amend its Binance complaint. Specifically, many perceived that the agency would be dropping charges against third-party tokens. Yet, Ripple’s Chief Legal Officer, Stuart Adleroty, notes that this may not be as beneficial as it seems.
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Crypto has sought clear regulation in the US for years. The lack of that clarity has led to a clash with the country’s regulators. With a backtrack seemingly taking place by the SEC, some experts have chimed in to clear up what the Binance case amendment really means for SOL, ADA, and others.
In its most recent filing, the SEC notified Binance that it “intends to seek leave to amend its complaint, including with respect to the ‘Third Payrt Crypto ASset Securities’… Obviating the need for the court to issue a ruling as to the sufficiency of the allegations as to those towns of this time.”
Yet, Ripple’s Adleroty took to X (formerly Twitter) to discuss a misinterpretation. Specifically, he notes that the SEC position is inconsistent. Moreover, he assured that the 10 tokens listed in the amendment are still “left out to dry in the Coinbase suit.”
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“When a judge signals B.S. on the SEC’s claim that 10 tokens on Binance are securities, the SEC says ‘never mind,” Adleroty says. “This isn’t how to regulate,” he added. Additionally, Ripple CEO Brad Garlinghouse said the filing is “more evidence of SEC hypocrisy.”
The amendment doesn’t settle the issue for Solana, Cardano, and other third-party tokens. The filing is more specific to the Binance conflict. It says the SEC won’t try and prove the security status of these tokens within that Binance case.
The move doesn’t provide the clarity many hoped. Indeed, it only creates more confusion. The market is still left uncertain on the security status of these assets. Until that is resolved, institutional participation will be limited.