The U.S. Securities and Exchange Commission (SEC) has filed a significant amendment to its lawsuit against Binance, a move that was seen as a major win for the crypto industry and was met with surprise.
The US Securities and Exchange Commission (SEC) has backed down from its lawsuit against Binance and Changpeng Zhao.
The agency unexpectedly abandoned the term “crypto asset securities”, which it has used in numerous lawsuits, by submitting an amendment to its lawsuit. The SEC emphasized that it did not intend to imply that any of the tokens in question were actually securities when using the term. The agency also added that it would refrain from using the phrase in the Binance lawsuit and regretted the confusion.
Commenting on the issue, attorney Jake Chervinsky said, “I am in shock. I had no idea gaslighting could be this extreme.” He shared his thoughts as follows:
“The SEC has finally responded to criticisms of the made-up term ‘crypto-asset security’ by lying and abandoning the term. The SEC used the term ‘crypto-asset security’ eight times in the eToro settlement on the same day it told the court it would no longer use the phrase to avoid confusion. The SEC has clearly screwed up.”
“It’s time for the SEC to admit that it’s caught up in contradictions,” said Stuart Alderoty, general counsel for Ripple, which won a four-year lawsuit with the SEC. Alderoty added that the SEC has finally admitted that the phrase “crypto asset security” is a made-up term.
This U-turn by the SEC is seen as a serious gain for the crypto industry.
The SEC filed the lawsuit against Binance in November, alleging that the exchange violated securities laws and that Binance was illegally selling “crypto asset securities” on its platform.
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