Key Takeaway:
- The U.S. SEC amended its complaint against Binance and Changpeng Zhao, clarifying that cryptocurrencies were not intended to be labeled as securities.
- The SEC amended its lawsuit to include three more tokens while retracting its “crypto asset securities” claim used in previous enforcement actions.
- The SEC expressed regret for assigning the securities label to individual cryptocurrencies and groups of tokens, apologizing for any confusion caused.
- Despite the clarification, the SEC continued its crackdown on cryptocurrencies, including Cosmos (ATOM), Axie Infinity (AXS), and Filecoin (FIL) as unregistered securities.
- SEC chair Gary Gensler faced investigation over alleged politically motivated hiring choices, with top GOP lawmakers involved in scrutinizing the SEC boss.
SEC’s Updated Stance on Cryptocurrencies
The SEC amended its complaint against Binance and former CEO Changpeng Zhao, retracting the use of the term “crypto asset securities” and stating it never intended to classify cryptocurrencies as securities. This move follows criticism and confusion surrounding the agency’s enforcement actions based on the securities label.
Impact on the Crypto Industry
The industry has long contested the existence of a distinct asset class of crypto asset securities, with digital asset representatives noting the SEC’s shift as a step in the right direction. However, some view the agency’s admission as insufficient, citing ongoing crackdowns on unregistered securities like Cosmos, Axie Infinity, and Filecoin.
Political Scrutiny of SEC Chair Gary Gensler
SEC chair Gary Gensler faced allegations of politically motivated hiring choices, leading to an investigation by top GOP lawmakers, including Patrick McHenry. The tension around Gensler’s leadership highlights broader concerns within the regulatory landscape of cryptocurrencies and digital assets.
