The US Securities and Exchange Commission [SEC] expressed its intent to amend its filing against crypto exchange Binance. Specifically, it was to hit pause “at this time” on the rulings of whether third-party tokens — including SOL, MATIC, ADA — are securities.
The defendants have already been informed about the agency’s intention to amend its complaint.
In the suit filed last year, the agency targeted Binance and its founder Changpeng ‘CZ’ Zhao for allegedly violating federal securities laws.
At the time, the apex regulatory agency claimed that ten third-party tokens — issued by other entities that were listed on the exchange — were unregistered securities. Apart from the aforementioned three tokens, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI were targeted by the SEC.
The latest joint status filing submitted to the court stemmed in response to an early July order that mandated both the parties to meet and confer to present a proposed schedule for subsequent proceedings.
Binance highlighted in the joint submission that during the process of conferring with the SEC, the agency “represented for the first time that it intends to move for leave to file an amended complaint.” The defendants added,
“The detail in the SEC’s proposal above suggests that they intend amendments beyond the claims concerning the Third-Party Tokens.”
Further proceedings will start only after the SEC officially amends the complaint.
Until Binance has a set of “proposed amended allegations” on its table, it is “premature and unreasonable” for the SEC to expect the company to agree to conduct merits discovery for claims that it will subsequently scratch out, the defendants concluded.
