The US Securities and Exchange Commission (SEC) has recently announced its plans to amend its original complaint against Binance. This move might potentially eliminate the need for the court to make a decision on tokens that were previously classified as securities. The joint filing by the SEC, Binance, its US affiliate, and founder Changpeng Zhao comes at a time when there is an increased focus on attracting pro-crypto voters in the United States.
The SEC’s filing on July 30th revealed that they have notified the defendants about their intention to amend the complaint, specifically regarding the ‘Third Party Crypto Asset Securities.’ This development would avoid the necessity for a court ruling on these allegations at the current time. This latest filing signifies a change in the SEC’s approach from the previous November omnibus opposition, where they claimed that Binance sold various ‘Third Party Crypto Asset Securities’ that qualified as securities under the Howey test.
During a July 9 hearing, Binance’s legal team argued that Judge Amy Berman Jackson’s ruling suggested that the tokens in question were excluded from the SEC case. However, the judge clarified that this was not the intended interpretation. This debate surrounding the classification of tokens as securities has been ongoing and contentious.
The recent shifts in the United States’ stance towards crypto reflect evolving political strategies. Former President Donald Trump, on July 27, promised to remove regulatory barriers on crypto and proposed transforming the country into a global digital asset hub. He also pledged to replace SEC Chair Gary Gensler and create a crypto advisory council. In contrast, Democratic lawmakers are promoting a progressive approach to digital assets, and Vice President Kamala Harris’s team is actively engaging with the crypto sector to repair past relationships.
The SEC’s decision to amend its complaint against Binance, along with the broader political efforts to attract pro-crypto voters, underscores the significance of crypto regulation in today’s political landscape. The ongoing debate over the classification of tokens as securities and the divergent approaches of political figures highlight the complexities and significance of the crypto industry in shaping policy decisions.
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