The SEC Withdraws Request to Classify ADA, MATIC, and SOL as Securities in Binance Lawsuit
The U.S. Securities and Exchange Commission (SEC) has made a significant regulatory shift by withdrawing its request to classify certain cryptocurrencies, including Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL, as securities in the ongoing Binance lawsuit.
This move signals a change in the SEC’s approach to these digital assets, impacting the broader cryptocurrency market.
SEC No Longer Considers ADA, SOL, and MATIC to be Securities
On July 30, 2024, the SEC responded to the court minutes from July 9, 2024, regarding the Tripartite Crypto Asset Securities’ complaint against Binance. By withdrawing the request, the SEC has avoided a judicial ruling on the classification of ADA, MATIC, and SOL as securities.
This decision not only affects the aforementioned tokens but also other popular cryptocurrencies like BNB, BUSD, ATOM, SAND, MANA, AXS, and COTI.
SEC’s Move Reflects Changing Political Support for Cryptocurrencies
The SEC’s change in stance is likely influenced by recent political developments in the United States. Presidential candidates advocating for pro-crypto policies have impacted regulatory attitudes, with former President Donald Trump pledging to end the “crypto wars” and appoint a crypto-friendly SEC Chairman.
Moreover, the Democratic Party’s progressive approach to digital assets has played a role in shaping the SEC’s evolving narrative on crypto regulation.
This shift underscores the growing recognition of the importance and potential of the cryptocurrency industry in the country.
