SEC Likely Still Views SOL as a Security, Say Crypto Execs

YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has not clarified the status of Solana (SOL) and other cryptocurrencies, despite recent court filings. On July 30, the SEC withdrew its request for a ruling on whether these tokens are securities in the ongoing lawsuit against Binance. However, experts believe this does not mean the SEC has changed its view on these assets.

Jake Chervinsky, chief legal officer at Variant Fund, highlighted on X that there is “no reason to think SEC has decided SOL is a non-security.” His remarks suggest that the regulatory body may still consider these digital assets as securities, despite the latest legal maneuver.

The SEC’s amended complaint, termed “Third Party Crypto Asset Securities,” indicates a shift in strategy rather than a change in stance. The commission no longer seeks a court decision on the security status of these tokens but continues to categorize them as securities in other lawsuits.

Experts Discuss Commission’s Legal Strategy in Crypto Cases

Miles Jennings, general counsel at a16z Crypto, and Justin Slaughter, policy director at Paradigm, shared their views. They noted that the SEC’s decision to amend its complaint doesn’t mean a change in policy. Jennings mentioned that Judge Amy Berman Jackson set a high bar for proving the Howey test in the Binance case, which may have influenced the SEC’s strategic decision.

The Howey test determines whether an asset qualifies as a security based on investment expectations and managerial efforts.

Justin Slaughter added that many observers might be “overreading this filing.” He emphasized that the SEC’s stance on Solana and other tokens has not softened.

Jennings further explained that The U.S. Securities and Exchange Commission might find a more favorable environment in the lawsuit against Coinbase, overseen by Judge Katherine Polk Failla. This suggests that the SEC is selectively choosing its battles based on the judicial climate.

SEC Continues to Classify Major Cryptocurrencies as Securities

The SEC’s scrutiny extends to several major cryptocurrencies, not just Solana. In its lawsuit against Binance, The U.S. Securities and Exchange Commission identified multiple tokens as securities. This list includes well-known cryptocurrencies such as BNB, Cardano (ADA), Polygon (MATIC), Sandbox (SAND), Decentraland (MANA), and Axie Infinity (AXS). The regulator has, at various points, classified at least 68 tokens as securities, impacting over $100 billion worth of digital assets.

Above all, despite the retraction of its court request, The U.S. Securities and Exchange Commission continues to label these tokens as securities in other legal contexts. Moreover, this ongoing classification could have significant implications for the broader cryptocurrency market and the future regulation of digital assets in the United States.

The post SEC Likely Still Views SOL as a Security, Say Crypto Execs appeared first on CoinChapter.