SEC to Amend Complaint Against Binance

The U.S. Securities and Exchange Commission (SEC) intends to seek an amendment to its original complaint against the crypto exchange Binance. This could influence whether tokens like Solana (SOL) are classified as securities, as revealed in a filing on Monday.

In a joint status report submitted on the same day, the SEC expressed its desire to amend its complaint. The SEC stated, “The SEC informed Defendants that it intends to seek leave to amend its Complaint, including with respect to the ‘Third Party Crypto Asset Securities’ as defined in the SEC’s Omnibus Opposition to Defendants’ Motion to Dismiss, Dkt. No. 172, obviating the need for the Court to issue a ruling as to the sufficiency of the allegations as to those tokens at this time.”

In November, the SEC filed an omnibus opposition asserting that various third-party crypto asset securities, including SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI, were sold as investment contracts on Binance’s platform. The SEC believes these assets meet the Howey test, which is used to define sales of securities as investment contracts.

However, in the latest filing, the SEC indicated its intention to amend the complaint, suggesting that a court ruling is not necessary at this time.

This filing was a response to the court’s July 9 order mandating that the SEC and Binance meet and confer, submitting a joint report by July 29 regarding a proposed timeline for further proceedings, including deadlines for any motion to amend the complaint.

During discussions with the SEC, Binance noted that the agency mentioned for the first time its intention to file an amended complaint. Binance further claimed, “The SEC’s proposal suggests that they intend amendments beyond the claims concerning the Third-Party Tokens.”