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

Ripple CEO Sparks XRP Hype with Major XRPL Apex 2025 Announcement!

Ripple CEO Brad Garlinghouse has hinted at an exciting event set to take place in…

April 4, 2025

XRP vs. Bitcoin: Retail Investors Drive XRP’s Growth While BTC Stalls

A new report from Glassnode reveals an interesting shift in crypto investment trends. While Bitcoin…

April 4, 2025

Fartcoin Roars Back With 24% Surge: Eyes Locked On $1 As Momentum Builds.

Fartcoin (FART), the AI-backed memecoin cryptocurrency, blasted onto the scene with 24.5% price pop in…

April 4, 2025

Is First Digital Trust in Crisis? Justin Sun Exposes $100M Deficit

Tron founder Justin Sun has publicly accused First Digital Trust (FDT), a Hong Kong-based financial…

April 4, 2025

XRP Price Today: Can It Break Out or Will the Bearish Trend Continue?

The crypto market has been all over the place recently, and XRP is no exception.…

April 4, 2025

Top Altcoins to Watch in April 2025

Crypto markets had a wild week - prices jumped, dipped, and then bounced back, all…

April 4, 2025