The U.S. Securities and Exchange Commission (SEC) has filed a motion to amend its original complaint in the Binance case, regarding the use of the term “crypto asset securities.” The SEC expressed regret for using this terminology and acknowledged that 10 tokens in question are not securities. Coinbase Chief Legal Officer (CLO) Paul Grewal stated that Coinbase will continue to challenge the SEC’s claims about these tokens, while Ripple CLO Stuart Alderoty also reacted to the SEC’s latest move.
SEC Files to Amend Binance Complaint
In its latest filing with the District Court of Columbia, the SEC requested permission to amend its original complaint against Binance regarding the use of the term “crypto asset securities.” The agency submitted the proposed amended complaint (PAC), along with a redline comparing the PAC to the original, and a ruling from the Kraken case where the defendants’ dismissal request was denied, as a reference for the court.
Binance has until October 11 to either oppose or agree to the SEC’s request. The agency is expected to continue its enforcement-driven regulatory approach to assert control over the crypto industry.
Coinbase and Ripple CLOs React to SEC Filing
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As reported by The Bit Journal, both Coinbase and Ripple are currently engaged in legal battles with the SEC. Coinbase CLO Paul Grewal responded to the SEC’s latest move, sharing a footnote from the amended complaint on his X account. He argued that the SEC’s classification of 10 tokens, including SOL, ADA, and MATIC, as securities was incorrect, and criticized the confusion the SEC may have caused.
Ripple CLO Stuart Alderoty also reacted, noting a shift in the SEC’s approach and its stance on the term “crypto asset securities.” Alderoty, who has frequently challenged the regulatory approach to anti-money laundering in the crypto sector, also highlighted that while ETH has seemingly escaped the SEC’s scrutiny, the 10 tokens in question have not. The SEC continues to claim that these tokens were sold as investment contracts.
Alderoty further criticized the SEC’s use of the term “crypto asset securities,” calling it a fabricated term. He accused the government agency of manipulating the courts with unclear terminology rather than providing clarity.
As the SEC amends its complaint against Binance, the responses from the Coinbase and Ripple CLOs underscore the growing tension between the regulatory body and major crypto companies. The Bit Journal will continue to cover the developments as the legal battles unfold.
So the SEC finally admits that 1/ “crypto asset security” is a made up term and 2/ to prove a “crypto asset security” is an investment contract, the SEC needs evidence of a bundle of “contracts, expectations, and understandings”?
Think it’s time for @SECgov to admit it has… https://t.co/iJIYTnNvxs pic.twitter.com/E58Pft7irc
— Stuart Alderoty (@s_alderoty) September 13, 2024
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