WASHINGTON, Wednesday, July 31, 2024 – The U.S. Securities and Exchange Commission (SEC) intends to amend its lawsuit against Binance, the world’s largest cryptocurrency exchange, including revisions related to “Third Party Crypto Asset Securities,” according to a court filing on Tuesday.
The court filing can be reached here.
The decision could delay any court ruling on whether 10 tokens, including Solana (SOL) and Matic (MATIC), are unregistered securities, a key issue in the case.
The SEC’s move follows a court hearing earlier this month where questions arose about how a ruling might affect allegations involving these specific tokens.
In the filing, the SEC informed Binance and its affiliated entities—Binance.US and founder Changpeng Zhao—that it “intends to seek leave to amend its complaint,” potentially sidestepping the need for an immediate court decision regarding the classification of the tokens.
The dispute over these third-party tokens escalated during a July 9 hearing when Binance’s attorneys suggested that Judge Amy Berman Jackson’s June 28 ruling on a motion to dismiss indicated that the tokens might be excluded from the case. However, the judge clarified that this was not her intention.
The tokens in question are issued by various companies not affiliated with Binance but are listed on the exchange.
The SEC has alleged that these tokens, including SOL, ADA, MATIC, FIL, and ATOM, among others, are unregistered securities.
Tuesday’s filing was a joint response from both parties, outlining their positions on how to proceed. The defense has expressed a desire to review the amended complaint before agreeing to the discovery process.
The SEC has yet to provide further details on how it plans to amend the complaint.
