The U.S. Securities and Exchange Commission (SEC) has revised its stance on the status of cryptocurrency assets amid its ongoing lawsuit against Binance.
Doubts About Cryptocurrency Assets Definition
Coinbase Chief Legal Officer (CLO) Paul Grewal drew public attention to the SEC's shift in an X post published on September 13. The SEC's new statement clarified that the agency does not view cryptocurrency assets themselves as securities but rather the investment contracts surrounding them. Additionally, the SEC expressed regret for any confusion caused by its previous assertions.
Accusations Against Binance
The SEC has accused Binance of offering unregistered securities, including its native token BNB. The agency also charged the crypto company with violations such as commingling customer assets and engaging in wash trading to artificially inflate trading volumes through an entity controlled by former CEO Changpeng Zhao. Binance denies all accusations, stating that customer funds were never at risk and that it has always complied with legal requirements.
Legal Experts' Reactions
Ripple attorney Stuart Alderoty criticized the SEC for using the term 'crypto asset securities,' arguing that it is a fabricated concept without legal foundation. His remarks followed the SEC's use of this term in its case against FTX, claiming that the company's assets were 'crypto asset securities.'
The SEC's changing stance on the status of cryptocurrency assets may have a significant impact on future legal proceedings and regulatory approaches in the crypto industry.
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