New York, Wednesday, October 23, 2024 – The US Securities and Exchange Commission (SEC) is not backing down on its claim that Solana (SOL) and other altcoins were illegally sold as unregistered securities, despite earlier speculation that the agency might retreat.
The amended filing is here.
In an amended complaint filed last week in its ongoing case against Binance, the SEC elaborated on its assertion that cryptocurrency exchanges, including Binance, violated the law by allowing users to trade SOL.
The complaint argues that the Solana Foundation promoted U.S.-based trading as a way to increase the value of SOL and its ecosystem, which led investors to view the token as a profit-generating investment.
The SEC holds that this view aligns with the definition of a security, which is an asset generating passive profits from the efforts of others. This amended complaint targets Solana, Cardano, Polygon, and other crypto tokens, accusing Binance of facilitating their unregistered sale.
Earlier, in July 2023, some legal experts speculated that the SEC might scale back its case, citing rumors that certain references to altcoins like Solana might be removed.
However, this week’s developments have solidified the SEC’s commitment to pressing its argument, further claiming that Binance operated as an unregistered exchange in “blatant disregard” of securities laws.
This aggressive approach has sparked widespread debate, with some, including entrepreneur Mark Cuban, arguing that SEC Chair Gary Gensler’s stance is damaging the American crypto industry and could lead to significant policy changes, depending on the outcome of the 2024 US presidential election.
