Altcoin
Solana, Cardano ‘left out to dry’ in SEC-Binance case, claim Ripple execs
There is no reason to believe that the SEC has deemed SOL a non-security, cautions policy watcher.
- Ripple disagrees with the SEC’s move to amend the Binance lawsuit and leave Coinbase.
- According to a policy watcher, the SEC’s move doesn’t make SOL a non-security.
Ripple [XRP] executives have slammed the recent U.S. Securities and Exchange Commission’s (SEC) proposal to amend the Binance lawsuit.
The proposal reportedly sought to strengthen the agency’s lawsuit against Binance and retract the labeling of Solana [SOL] and other tokens as securities.
Interestingly, Coinbase’s lawsuit also labeled SOL, Cardano [ADA], Polygon [MATIC], and others as securities, but the SEC hasn’t reversed that decision.
This tipped Ripple CEO Brad Garlinghouse to term the move as “SEC hypocrisy,” which will fuel more “industry confusion.”
“More evidence of SEC hypocrisy. Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion.”
On his part, Ripple’s chief legal officer, Stuart Alderoty, slammed the agency for failing to amend the complaint against tokens mentioned in the Coinbase lawsuit.
“These tokens are left out to dry in the Coinbase suit. This isn’t how to regulate.”
Mixed reaction to SEC’s Binance move
Early in the week, the SEC proposed amending and retracting the security label against third-party tokens listed on Binance. The agency’s shift in stance came a week after the approval of ETH ETFs, which the SEC initially also deemed ‘security.’
The agency also recently cleared Binance Coin [BNB] as a non-security, alongside its stablecoin BUSD.
Some industry figures, like Tyler Winklevoss, believe that the shift in U.S. politics and regulation framework, especially through Trump, could be responsible for the changes.
However, the SEC’s move doesn’t mean that Binance charges are being dropped altogether. In fact, it also doesn’t mean that the agency views SOL as a non-security.
Per policy watcher Jake Chervinsky, chief legal officer at Variant Fund, SOL wasn’t out of the woods yet.
“There is no reason to think SEC has decided SOL is a non-security…Note the SEC still calls these tokens securities in the other exchange cases.”
Put differently, the SEC’s lack of clarity, especially on tokens on exchanges, still exists despite the recent U.S. pivot. How Binance will react to likely new claims brought forward by the agency remains to be seen.
