SEC Withdraws Request to Classify SOL and ADA as Securities

The United States Securities and Exchange Commission (SEC) has withdrawn its request for the court to classify cryptocurrencies like Solana (SOL) and Cardano (ADA) as securities in its case against leading cryptocurrency exchange Binance.

On July 30, the SEC filed a response to the court’s minute order dated July 9, 2024. The SEC said it wants to amend its complaint about the “Third Party Crypto Asset Securities” defined in its opposition to Binance’s motion.

SEC Removes 10 Tokens From Securities List

According to the securities watchdog, the decision removes the need to rule on the sufficiency of the allegations concerning those tokens at this time. As a result, the agency has stopped requesting the court to decide if the affected tokens should be classified as securities.

The tokens the SEC no longer consider as securities in the Binance lawsuit include BNB, Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and Coti (COTI).

These tokens were part of a larger list that the SEC believes to be securities. In June 2023, the SEC said at least 68 tokens were securities, impacting more than $100 billion worth of cryptocurrencies in the market.

Ending the “War on Crypto”

The regulator’s decision to withdraw its request follows efforts by presidential candidates to gain support from pro-crypto US voters.

On July 27, US President aspirant Donald Trump pledged to end the “war on crypto” as part of his election campaign. Speaking at the Bitcoin 2024 conference in Nashville, Tennessee, Trump stated that the US would become the “crypto capital of the planet.” He also said he would fire SEC Chair Gary Gensler on his first day as president and set up a crypto and bitcoin advisory council.

Meanwhile, views on cryptocurrency are evolving within the Democratic Party. On July 27, members of the Democratic caucus in the US House of Representatives signed a letter urging the party to adopt a progressive stance on blockchain technology and digital assets. 

In a related move, advisors for Vice President and presidential candidate Kamala Harris have reached out to crypto companies. Their goal is to repair and strengthen the party’s relationship with the cryptocurrency industry.