- The SEC withdrew the Binance lawsuit’s request to classify ADA, MATIC, and SOL as securities.
- Affected tokens include ADA, MATIC, SOL, BNB, BUSD, etc.
- The shift in the SEC’s stance comes after growing political support for cryptocurrencies in the United States.
In a notable shift in regulatory stance, the U.S. Securities and Exchange Commission (SEC) has withdrawn its request for a court ruling to classify certain cryptocurrencies, including Cardano’s ADA, Polygon’s MATIC and Solana’s SOL, as securities amid ongoing litigation over cryptocurrencies. Request to exchange to Binance.
This development marks a significant change in the SEC’s approach to classifying these digital assets.
SEC no longer considers ADA, SOL and MATIC to be securities
On July 30, 2024, the U.S. Securities and Exchange Commission (SEC) responded to the court minutes released on July 9, 2024. Tripartite Crypto Asset Securities’ complaint opposes Binance’s motion to dismiss.
By withdrawing this request, the SEC effectively eliminated the need for a judicial ruling on whether these tokens should currently be classified as securities.
While the immediate coins affected by this withdrawal are ADA, MATIC, and SOL, other well-known cryptocurrencies such as Binance Coin (BNB), Binance USD (BUSD), Cosmos (ATOM), The Sandbox (SAND), Decentraland ( MANA), Axie Infinity (AXS) and COTI.
The SEC’s retraction follows the SEC’s previous position that designated at least 68 tokens as securities, affecting a significant portion of the cryptocurrency market worth more than $100 billion.
SEC’s move coincides with growing political support for cryptocurrencies in the U.S.
The SEC’s change in stance appears to be influenced by recent political developments, as U.S. presidential candidates increasingly express pro-crypto sentiments, influencing regulatory attitudes.
Former President Donald Trump campaigned on a promise to end the so-called “crypto wars” and expressed his intention to replace SEC Chairman Gary Gensler with a more crypto-friendly figure.
Meanwhile, members of the Democratic Party advocate a more progressive approach to digital assets.
The SEC’s change underscores the broader, evolving narrative of U.S. attitudes toward cryptocurrency regulation, reflecting a growing awareness of the industry’s importance and potential.
Impact of SEC’s Decision on Cryptocurrency Classification
With the recent withdrawal of the U.S. Securities and Exchange Commission (SEC) request to classify certain cryptocurrencies as securities, including ADA, MATIC, and SOL, the cryptocurrency market has witnessed a significant shift in regulatory dynamics.
As the SEC no longer considers ADA, SOL, and MATIC to be securities, this decision has far-reaching implications for not only these specific tokens but also for the broader cryptocurrency ecosystem.
Political Influences on Regulatory Changes
The SEC’s change in stance regarding cryptocurrency classification coincides with a notable increase in political support for cryptocurrencies in the United States. This shift is reflective of the evolving attitudes towards digital assets within the political landscape.
From former President Donald Trump’s promises to address crypto regulations to the Democratic Party’s progressive stance on digital assets, political influences have played a crucial role in shaping the regulatory environment for cryptocurrencies.
Future Outlook for Cryptocurrency Regulation
As the SEC continues to adapt its approach to cryptocurrency regulation in response to changing political dynamics and market trends, the future outlook for cryptocurrency classification remains uncertain yet promising. The evolving narrative of U.S. attitudes towards digital assets reflects a growing recognition of the industry’s potential and significance.
