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The SEC pauses allegations against Solana, Cardano, and Polygon as securities.
The U.S. Securities and Exchange Commission (SEC) has said it will stop investigating claims that Solana (SOL), Cardano (ADA), and Polygon (MATIC) are not properly listed securities. This is a big change. This choice was made while these cryptocurrencies are still being closely looked at and regulators aren’t sure what to do about them.
On July 29, the SEC filed a joint status report with the U.S. District Court for the District of Columbia. In it, it said that it was going to change its lawsuit against Binance, a major cryptocurrency exchange. The amendment makes changes to “third-party crypto asset securities,” which might briefly make things easier for Solana, Cardano, and Polygon. Because of the regulatory cloud over these assets, they have been taken off a number of trading sites.
SEC and binance agree on briefing schedule, but the market reacts mixed
According to the joint answer, the Securities and Exchange Commission and Binance have agreed on a time to brief each other on the motion to amend and other related documents. The SEC has 30 days from the date the court sets the hearing to file its motion to amend. This plan gives investors in SOL, ADA, and MATIC a short break, but a court decision is still needed to decide for sure if these tokens should be considered securities in the U.S.
Even though the news could be good, the market response has been mixed. The price of Solana (SOL) has dropped more than 5% today, while the prices of Cardano (ADA) and Polygon (MATIC) have dropped about 4% and 1%, respectively. This market reaction shows that investors are still feeling uncertain and cautious.
This event happened against the background of the SEC’s harsh stance in June 2023, when it sued Binance and Coinbase. The claims said that the exchanges made it easier for unregistered securities to be traded. The SEC has not only taken action against Solana, Cardano, and Polygon. Dash, Filecoin, and NEAR Protocol are some of the other tokens that the financial body has gone after and labeled as securities.
SEC reconsiders token classification
In reaction to what the SEC said, the Solana Foundation and Polygon Labs said they didn’t agree with what the regulator said. Both companies said they were set on doing business outside of the U.S. because of the rules and regulations that make it hard for them to do business there. Even though these things were said, trading sites like Robinhood and Revolut have taken down the tokens that the SEC found.
The fact that the SEC changed its mind about some coins and its lawsuit against Binance could have been a way to focus on stronger claims and make the case easier to understand. It’s also possible that the SEC knows that the world of cryptocurrencies is difficult and always changing, which is why they are being careful with their rules.
The SEC briefly stopped the accusations against Solana, Cardano, and Polygon. However, the law is still not clear. It is very important to have clear rules that protect owners and allow new ideas to grow. The way the law is changing demonstrates this. People who have money in the bitcoin market need to keep an eye on things and get ready for the law to change.
