SEC seeks to drop its allegations against SOL, MATIC in Binance case

The US Securities and Exchange Commission (SEC) filed a joint response with Binance and other defendants (namely Binance, Binance.US and founder Changpeng Zhao) following the court’s July 9, minute order. The commission intends to amend its complaint in the case.

The proposed amendment includes details about “Third Party Crypto Asset Securities.” US SEC may be dropping its allegation against third-party tokens, like Solana’s SOL and Polygon’s MATIC which was mentioned in the lawsuit against Binance.

SEC wants to amend its claims over crypto assets

According to the court filings, parties met, conferred, and agreed to a briefing schedule on a motion to amend. The motion will be due within 30 days of entry of the scheduling order issued by the Court. The defendants’ response to the motion to amend will be due after 30 days.

It added that the parties agreed to a schedule for briefing and related pleadings but they were unable to reach an agreement over the discovery phase.

The SEC had proposed that discovery will commence according to the proposed agreed schedule regardless of any pending motions.

Defendants suggest that the Parties should meet and confer to discuss further steps regarding the claims after the SEC seeks leave to amend. This includes a plan for discovery and submitting a report ahead.

What to expect from amendments?

The amendment is expected to hold more details about the “Third Party Crypto Asset Securities.” These digital assets are likely the tokens that are issued by parties other than Binance the regulator alleges should be classified as securities.

The SEC filed the lawsuit against Binance, suggesting SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities. The proposed amendment may change these definitions. These tokens are part of a list that the SEC considers as Securities. The commission claimed at least 68 tokens were securities back in June 2023.

By amending the complaint, the commission is trying to strengthen its case while providing more evidence to support its allegations in link with third-party tokens. This decision is also to withdraw its request for a ruling after US Presidential candidates attempt to gain the support of pro-crypto US voters.

The commission’s planned amendment can delay the court’s ruling on its original allegations regarding certain tokens. This suggests challenges in proving its case initially, as the SEC seeks to strengthen its arguments.

The global digital assets market saw a decline of more than 3% over the last day to stand at $2.4 trillion. Bitcoin price dropped by over 4% in the last 24 hours dragging it to trade on $66,000 levels. Recently, Solana surpassed BNB to become the 4th biggest crypto in the market. SOL has recorded a surge of 80% on a year-to-date period.