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SEC Plans to Amend Binance Complaint, Avoiding Ruling on Third-Party Crypto Asset Securities

Summary:
The US Securities and Exchange Commission (SEC) plans to amend its original complaint against Binance, which might eliminate the need for the court to decide on tokens that were previously classified as securities. The joint filing comes amid increased efforts by presidential candidates to attract pro-crypto voters in the United States. SEC Moves to Amend Complaint The SEC’s filing on July 30th reveals that it has notified Binance, its US affiliate, and founder Changpeng Zhao of its intention to amend its complaint, particularly with regards to the ‘Third Party Crypto Asset Securities,’ thereby negating the need for a court ruling on these allegations at this time. “The SEC informed Defendants that it intends to seek leave to amend its Complaint, including with respect to

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The US Securities and Exchange Commission (SEC) plans to amend its original complaint against Binance, which might eliminate the need for the court to decide on tokens that were previously classified as securities.

The joint filing comes amid increased efforts by presidential candidates to attract pro-crypto voters in the United States.

SEC Moves to Amend Complaint

The SEC’s filing on July 30th reveals that it has notified Binance, its US affiliate, and founder Changpeng Zhao of its intention to amend its complaint, particularly with regards to the ‘Third Party Crypto Asset Securities,’ thereby negating the need for a court ruling on these allegations at this time.

“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.”

The latest filing represents a shift in the SEC’s approach compared to the November omnibus opposition in which the securities regulator claimed that Binance offered and sold several ‘Third Party Crypto Asset Securities’ like – Cardano (ADA), Solana (SOL), Filecoin (FIL), Polygon (MATIC), Algorand (ALGO), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI – as investment contracts. The regulator then argued that these assets qualify as securities under the Howey test.

The debate over these tokens intensified during a July 9 hearing when Binance’s lawyers argued that Judge Amy Berman Jackson’s June 28 ruling implied these tokens were excluded from the SEC case. The judge, however, clarified that this was not her intent.

Trump’s Campaign Promises vs. Democratic Policy Shifts

Recent shifts in the United States’ attitudes toward crypto reflect evolving political strategies. On July 27, former President Donald Trump vowed to end regulatory constraints on crypto and proposed making the country a global digital asset hub. He also vowed to replace SEC Chair Gary Gensler and establish a crypto advisory council.

Meanwhile, Democratic lawmakers are advocating for a progressive stance on digital assets, and Vice President Kamala Harris’s team is working to strengthen connections with the crypto sector and repair years of damage.

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