News View Non-AMP

SEC Binance Lawsuit Update: New Tokens Labeled as Securities – What Next?!

Published by
Mustafa Mulla

The U.S. Securities and Exchange Commission (SEC) has ramped up its legal action against Binance, one of the world’s leading cryptocurrency exchanges. The SEC has added more tokens to its lawsuit, now labeling Axie Infinity Shards, Filecoin, Cosmos’ ATOM, Sandbox, and Decentraland as securities.

However, in a recent update, the SEC clarified that other well-known tokens like Solana and Cardano are not considered securities, adding a twist to the ongoing case.

New Allegations Against Binance

The expanded lawsuit also accuses Binance and its U.S. affiliate, BAM Trading, of allowing the trading of these newly identified securities without proper registration. According to the SEC, Binance’s platforms were filled with promotional material from token creators, making these tokens appear to be attractive investment opportunities.

The SEC claims that Binance played a role in creating a market where these tokens were presented as safe investments, misleading investors.

Is Binance “Illegal”?

Alongside these claims, the SEC has accused Binance of illegally operating as an exchange, broker-dealer, and clearing agency without proper registrations. The regulator argues that Binance’s operations violated securities laws by trading unregistered securities.

Additionally, the SEC alleges that Binance did not fully inform its users about the risks and legal issues surrounding the tokens traded on its platform, both in the U.S. and globally.

Crypto Community Lashes Out – SEC Under Fire!

The SEC’s expanded lawsuit has faced strong criticism. Some argue that the agency’s actions seem more like a “witch hunt” than a genuine effort to create clear regulations. Critics also point to the SEC’s inconsistent handling of crypto cases, which they believe is confusing and unhelpful to the industry.

Ripple’s Chief Legal Officer, Stuart Alderoty, has called out inconsistencies in the SEC’s actions, specifically criticizing the use of the term “crypto asset security” as a made-up concept.

Coinbase’s Chief Legal Officer, Paul Grewal, has also raised concerns, saying the SEC’s contradictory and disorganized approach is harming the growth of the crypto market.

Also Check Out : September 2024 Fed Rate Cut Analysis: Will the Fed Surprise Markets with a Bold Move?

The SEC’s expanded lawsuit against Binance raises questions about the blurred lines between securities and digital assets. Will this case provide clarity or further fuel the regulatory uncertainty?

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Breaking: Pi Network Partners With Banxa and Onramper – Yet Pi Coin didn’t Surge!

Big announcement coming from the Pi Network. On the occasion of Pi2day, Pi Network has…

June 29, 2025

Will XRP Price Hit $10

The Ripple vs SEC is finally on the cusp of wrapping up, with a recent…

June 29, 2025

Senate Passed Trump’s “Big, Beautiful Bill” With 51-49 Vote

The U.S. Senate just gave the green light to President Trump’s widely discussed tax and…

June 29, 2025

Is XRP About to Lead the Next Altcoin Season?

It’s starting to feel like something big is coming for XRP. After months of sideways…

June 29, 2025

Bitcoin, ETH, & XRP Price Prediction for Next Week (30th June 2025 – 05th July 2025)

The broader crypto market is holding steady going into the final days of June, with…

June 29, 2025

Pi Network News: 337M Pi Token Unlock in July – Major Sell-Off Coming

Pi Network, once seen as a quiet underdog, is now facing one of its biggest…

June 29, 2025