SEC Declares 10 Cryptocurrencies Exempt from Securities Classification
SEC's revised stance in Binance and Kraken cases could impact future crypto regulations and asset classifications.
Highlights:
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SEC amends position, excludes 10 coins from securities classification.
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Solana, Cardano, and Polygon among the assets not considered securities.

During ongoing litigation with cryptocurrency exchanges Binance and Kraken, the U.S. Securities and Exchange Commission (SEC) has revised its stance, declaring that ten cryptocurrencies, including Solana (SOL), Cardano (ADA), and Polygon (MATIC), are not classified as securities.

This marks a significant shift in the SEC's approach, particularly as these assets were previously identified as unregistered securities in earlier complaints against Kraken.
The SEC's decision comes amid a legal battle where Kraken is contesting allegations of operating as an unregistered securities exchange. Kraken has filed for a jury trial, asserting that its operations do not fall under the SEC's jurisdiction and emphasizing that digital assets lack the characteristics of traditional securities.

The exchange argues that the SEC's interpretation is overly broad and lacks legal precedent, claiming that digital assets do not meet the criteria for investment contracts as established by the Howey Test.
This development is pivotal for the cryptocurrency industry, as it could influence future regulatory frameworks and the classification of digital assets.
The SEC's evolving position may signal a more nuanced approach to regulating cryptocurrencies, balancing investor protection with the need for innovation in the financial sector.
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