SEC still intends to amend Binance Complaint thus changing the outcome in token securities ruling

The U. S. Securities and Exchange Commission (SEC) plans to file a motion to alter the agency’s complaint against crypto exchange Binance. It may affect the need for a court decision on whether tokens such as Solana (SOL) will be classified as securities, according to a Monday filing.

Lacking sufficient jurisdiction, the district court then stated in its joint status report submitted on Monday that the SEC will amend its complaint. The SEC stated that after notifying the Defendants on its plan to amend its Complaint on the ‘Third Party Crypto Asset Securities’ as defined in the SEC’s Omnibus Opposition to Defendants’ Motion to Dismiss, No. 172, it rendered it unnecessary for the Court to rule on the sufficiency of the allegations on those tokens.

In November, the SEC filed the omnibus opposition claiming that Binance’s platforms offered and sold third-party crypto asset securities, namely SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as investment contracts. The SEC said these assets satisfy the Howey test, which defines the sale of securities as investment contracts.

Nevertheless, in the Monday filing, the SEC said it will seek to alter its complaint, thus not requiring a judicial decision “for the present time. ”

This was in response to the court’s order on July 9 whereby the commission and Binance was directed to appearance before the court and schedule a conference to file their order , a proposal which was filed on the 29 of July. This submission should indicate the time line on when the party has to file a motion to amend the complaint.

Binance also mentioned in the joint report that while in the dialogue with the SEC it “asserted for the first time that it seeks leave to file an amended complaint. ” The company also pointed out that the “SEC proposal implies the intention to file amendments beyond the allegations related to the Third-Party Tokens. ”

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