Solana, Cardano ‘left out to dry’ in SEC-Binance case, claim Ripple execs

As an analyst with years of experience navigating the intricate world of cryptocurrencies and regulatory compliance, I find myself intrigued by this latest development involving Ripple, Binance, and the SEC. The SEC’s decision to amend its lawsuit against Binance while seemingly overlooking tokens like Solana, Cardano, Polygon, and others in the Coinbase case, feels more like a game of chess than a clear-cut regulatory move.

As a researcher, I find myself expressing my disagreement with the latest proposed amendment by the U.S. Securities and Exchange Commission (SEC) in their lawsuits against Binance. The views of Ripple executives echo this sentiment, as they have vocally expressed their dissent towards these changes.

As a crypto investor, I’ve been keeping an eye on the news regarding the agency’s legal action against Binance. From what I understand, there seems to be a proposed move aimed at fortifying their case against Binance. Furthermore, it appears they might reconsider their classification of Solana [SOL] and other tokens as securities.

It’s worth noting that Coinbase’s lawsuit classifies Solana (SOL), Cardano (ADA), Polygon (MATIC), among others, as securities. However, the Securities and Exchange Commission has yet to overturn this classification.

This tipped Ripple CEO Brad Garlinghouse to term the move as “SEC hypocrisy,” which will fuel more “industry confusion.”

“SEC chair, Gensler, insists on the clarity of the rules, but inconsistent application by the SEC creates even more uncertainty within the financial industry.”

In response, Stuart Alderoty, Ripple’s top legal advisor, criticized the agency for not revising the charges against the tokens involved in the Coinbase lawsuit.

“These tokens are left out to dry in the Coinbase suit. This isn’t how to regulate.”

Mixed reaction to SEC’s Binance move

At the beginning of the week, the Securities and Exchange Commission (SEC) suggested changing and rescinding the security classification for third-party tokens listed on Binance. This adjustment in their position was made a week following the approval of ETH exchange-traded funds (ETFs), which the SEC had initially considered as ‘securities’ as well.

The agency has recently classified Binance Coin (BNB) and Binance’s stablecoin BUSD as non-securities.

Certain influential personalities within the industry, such as Tyler Winklevoss, posit that the evolving political climate and regulatory landscape in the U.S., particularly under the administration of President Trump, may have contributed to these observed changes.

While I appreciate the SEC’s recent decision, it doesn’t automatically dismiss the potential charges against Binance. Moreover, this action doesn’t necessarily imply that Solana (SOL) is considered a non-security by the agency either. It’s essential to stay informed and cautious as we navigate the dynamic world of cryptocurrency investments.

According to Jake Chervinsky, policy observer and chief legal advisor at Variant Fund, Solana (SOL) hasn’t fully navigated its challenges yet.

It appears that the Securities and Exchange Commission (SEC) hasn’t officially declared Solana (SOL) as a non-security. However, it’s important to note that the SEC classifies other similar tokens as securities in different exchange cases.

To put it another way, even though the U.S. has recently shifted its focus, there’s still ambiguity regarding how the SEC views tokens traded on exchanges. It’s unclear how Binance will respond when the SEC potentially brings new allegations against them in the future.

2024-07-31 16:08

Mixed reaction to SEC’s Binance move

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