Is the SEC Giving up the Battle Against Cryptos?

The United States Securities and Exchange Commission (SEC) recently amended its complaint in the highly publicized lawsuit against Binance, suspending its allegations against certain crypto assets.

Regulatory Update on Solana and Other Cryptos

Last week, the SEC amended its complaint against Binance, one of the largest crypto exchanges in the world. The agency specifically decided to suspend the allegations that Solana, Cardano, and Polygon are unregistered securities.

This revision could signal a change in strategy in the SEC’s ongoing battle against crypto assets. However, J.W. Verret, a law professor at George Mason University, sees it as a retreat, suggesting that the agency might doubt its chances of success with the current judge. “This means that the SEC is on the defensive. It’s a positive development. The SEC would not have acted this way if it thought it could win with this judge on this charge,” he said. These remarks suggest that the agency could renew its accusations at any moment.

Community Perspectives and Reactions

The legal community and investors have reacted in a mixed manner to this news. Some see it as a reason to celebrate, while others remain skeptical. A legal expert, who wished to remain anonymous, openly expressed his doubts: “I don’t understand where the enthusiasm is coming from. Nothing suggests that the SEC is actually dropping its accusations.”

The expert also noted that the SEC informed Binance’s lawyers of the withdrawal of the allegations at the last minute, which is atypical for a judicial procedure. This decision could reflect growing pressure on the SEC, with political tensions and a reassessment of its strategies concerning Ethereum ETFs and other crypto issues. SEC Chairman Gary Gensler is under increasing pressure in the context of the 2024 presidential elections, which could influence the agency’s decisions.

In summary, the temporary withdrawal of accusations against Binance appears to be an encouraging signal for the crypto industry. However, it is premature to assert that there is a real change in SEC policy. The consequences of this decision remain unclear and could evolve based on future developments and political pressures. The future of crypto regulations in the United States should therefore be closely watched.