- The SEC reclassifies ten cryptocurrencies, including Solana and Cardano, from securities to non-securities.
- A recent SEC amendment eliminates the need for an immediate court decision on crypto asset securities allegations.
The current news delivers encouraging updates for Solana (SOL) and Cardano (ADA) following the US SEC’s revised lawsuit against Binance.
SEC Reclassifies Solana and Cardano, Removing Securities Designation
This update has reclassified ten cryptocurrencies, including Solana and Cardano, that were formerly classified as securities to no longer be deemed such. The SEC has filed a modification to “Crypto Asset Securities,” which eliminates the necessity for an instant court decision on the underlying accusations.
[ ZOOMER ]
SEC MOVES TO AMEND COMPLAINT AGAINST BINANCE, SEEKS TO NO LONGER PROVE TOKENS SUCH AS SOLANA ARE SECURITIES: FILING
— zoomer (@zoomerfied) July 30, 2024
The SEC advised the defendants of its intention to seek permission to amend its complaint, avoiding the need for the court to consider the sufficiency of the accusations at this time. As a result, tokens SOL, ADA, MATIC, ATOM, SAND, MANA, BNB, BUSD, AXS, and COTI are no longer classified as securities.
Although this announcement is expected to be positive, the performance of SOL and ADA tokens over the last 24 hours has been lackluster. During this time, the price of SOL fell 5.45% to $181.89, attempting to rebound from its local lows with a daily trading volume of $3.14 billion.
Meanwhile, during the same period, the price of ADA decreased by 3.00% to $0.406, rebounding from recent lows. Cardano’s token now has a daily trading volume of $297.59 million.
Previously, CNF revealed that the SEC had targeted many cryptocurrencies for labeling as securities, including Polygon (MATIC), Terra Luna Classic (LUNC), The Sandbox (SAND), Decentraland (MANA), and Chiliz. The Commission claimed that all of these cryptocurrencies were initially offered to investors as investment contracts through their related companies.
Furthermore, earlier this month, we highlighted the US Court’s dismissal of various SEC lawsuits against Binance relating to BNB. Furthermore, secondary sales of BNB by parties other than Binance were found not to be unregistered securities offerings.
