Key Takeaway:
- Solana, Cardano, and Polygon facing allegations of being unregistered securities by the SEC
- SEC decides to pause allegations against these crypto assets in ongoing lawsuit against Binance
- Amendment to complaint planned by SEC could provide temporary relief to the assets
- SEC filed lawsuits against Binance and Coinbase in June 2023 for trading unregistered securities
- Solana Foundation and Polygon Labs disagreed with SEC’s assessment, leading to delisting by platforms like Robinhood and Revolut
Solana, Cardano, and Polygon Allegations Paused by SEC
The U.S. SEC has decided to temporarily pause its allegations that Solana, Cardano, and Polygon are unregistered securities as part of its ongoing lawsuit against Binance. This move comes after a joint status report filed in the U.S. District Court for the District of Columbia revealed plans to amend the complaint, offering a brief respite to the affected assets.
SEC Lawsuits Against Binance and Coinbase for Unregistered Securities
In June 2023, the SEC filed lawsuits against Binance and Coinbase, accusing them of facilitating the trading of unregistered securities. The lawsuits, which are yet to be resolved, also target other tokens like Dash, Filecoin, and NEAR Protocol, suggesting they should be classified as securities.
Solana Foundation and Polygon Labs’ Disagreement with SEC Assessment
Despite facing delistings from popular platforms like Robinhood and Revolut, the Solana Foundation and Polygon Labs have publicly disagreed with the SEC’s classification of Solana, Cardano, and Polygon as securities. They emphasize their commitment to operating outside of U.S. markets despite the regulatory challenges.
