Exciting News for Solana and Cardano
The US Securities and Exchange Commission (SEC) has made significant changes to its lawsuit against Binance, which has positive implications for Solana (SOL) and Cardano (ADA). In this new development, the SEC has reclassified ten cryptocurrencies, including Solana and Cardano, that were previously considered securities in the legal action against Binance and its former CEO, Changpeng Zhao.
Cardano and Solana Cleared as Non-Security Assets
The original complaint filed on June 5, 2023, by the SEC targeted Binance and its US affiliate, BAM Trading Services Inc. The lawsuit alleged that these entities operated without the required registrations to function as national securities exchanges, broker-dealers, and clearing agencies. This lack of registration was said to have allowed Binance to operate an unregulated trading platform, exposing US investors to risks and potentially misguiding them about the security and oversight of their investments.
SEC’s Amendment and Token Reclassification
On July 30, the SEC filed an amendment to its complaint, specifically related to “Crypto Asset Securities.” This amendment eliminates the need for an immediate ruling on the adequacy of the allegations regarding these tokens. The SEC’s intention to amend the complaint concerning “Third Party Crypto Asset Securities” eliminates the need for the court to evaluate the allegations about those tokens at this stage.
- The SEC initially classified Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI) as securities.
Market Response and Analyst Insights
Despite the potentially positive implications of the SEC’s reclassification, the market has not shown any significant reaction so far. Solana and Cardano prices have experienced slight decreases, mirroring the overall market sentiment influenced by recent negative news about Bitcoin, particularly concerning the US government’s potential sale of Bitcoin.
- DeFi^2 (@DefiSquared), a prominent crypto trader, highlighted the significance of the reclassification, suggesting potential benefits like a Robinhood re-listing and increased chances of ETF approvals.
Regulatory Approvals and ETF Requests
The Cboe has formally requested SEC approval for asset managers VanEck and 21Shares to launch a spot Solana-based exchange-traded fund (ETF). This request, submitted in early July, seeks regulatory approval for these products to be listed.
As of the latest update, Cardano is trading at $0.4015.
Hot Take: Potential Market Impacts
The SEC’s reclassification of Solana and Cardano as non-securities could have significant implications for the crypto market’s regulatory landscape. This development may pave the way for new opportunities such as ETF approvals and increased institutional interest in these assets. Stay tuned for further updates on how this regulatory shift could shape the future of the crypto industry.
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