- SEC withdraws its request to classify ADA, MATIC, and SOL as securities in the Binance lawsuit.
- Tokens affected include ADA, MATIC, SOL, BNB, BUSD, and several others.
- The SEC’s change of position follows growing pro-crypto political support in the United States.
In a notable regulatory development, the U.S. Securities and Exchange Commission (SEC) has withdrawn its request for a court declaration that certain cryptocurrencies—most prominently Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL—should be treated as securities in its ongoing litigation against the cryptocurrency exchange Binance.
This shift removes an immediate push for a judicial determination on those tokens’ securities status, signaling a change in the agency’s legal strategy and narrowing the scope of assets it is actively asking the court to classify as securities at this stage.
SEC no longer pressing to deem ADA, SOL, and MATIC securities
In a July 30, 2024 filing responding to a court minute order issued July 9, 2024, the SEC indicated it intends to amend parts of its complaint that previously characterized a group of assets as “Third Party Crypto Asset Securities” in opposing Binance’s motion to dismiss. By retracting that specific request, the SEC has effectively paused its effort to secure a court ruling on the securities status of those tokens for now.
While the immediate retraction names ADA, MATIC, and SOL, the SEC’s prior filings had implicated a broader set of assets. Other notable tokens that were referenced in earlier SEC positions include Binance Coin (BNB), Binance USD (BUSD), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI, among others.
Until this change, the SEC had previously identified at least 68 tokens it viewed as securities, a stance that, if litigated and upheld, would have affected a substantial portion of the cryptocurrency market valued in the tens of billions of dollars.
Policy shift coincides with growing pro-crypto political sentiment
The SEC’s revised approach comes amid mounting political support for cryptocurrencies in the United States. As the national political conversation shifts, both leading presidential contenders and influential lawmakers have signaled more favorable or pragmatic positions toward the industry, influencing the regulatory environment.
For example, former President Donald Trump has campaigned on ending what he calls the “war on crypto” and has suggested replacing the SEC chair with an official who would adopt a more industry-friendly stance. At the same time, some Democratic lawmakers have advocated for clearer, more constructive regulation that supports innovation while addressing risks.
These political developments appear to be one factor among several contributing to the SEC’s recalibration. The agency’s decision to withdraw the request to classify certain tokens as securities reflects a broader, evolving regulatory narrative—one that balances enforcement priorities with changing political and market realities.
Although this move reduces immediate regulatory pressure on the specified tokens, it does not resolve the larger legal and regulatory questions facing the cryptocurrency industry. The SEC may still pursue other claims or revise its complaint, and the classification of digital assets remains a central and ongoing issue for market participants, courts, and policymakers.