On July 30, the U.S. Securities and Exchange Commission (SEC) filed a joint status report in the District Court for the District of Columbia, revealing its intention to amend the complaint against Binance Holdings, Binance.US, and co-founder Changpeng Zhao. 

This move, aimed at redefining what constitutes “third-party crypto asset securities,” may include Solana (SOL) among the tokens under scrutiny.

The SEC's amendment will address the classification of certain crypto assets, potentially altering their legal standing. The agency’s decision comes after recent court rulings on Binance and BNB, and it signifies a broader reevaluation of how cryptocurrencies are regulated.

SEC’s Approach to Crypto Securities

Initially, the SEC identified ten cryptocurrencies as securities in its lawsuit against Binance. These include Filecoin (FIL), Algorand (ALGO), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI). The SEC's new filing suggests that the court does not need to rule on these tokens' security status immediately.

This decision follows a recent court order declaring that BNB is not a security and a ruling on July 9 regarding BUSD secondary sales. These developments indicate a shifting legal landscape for digital assets, especially regarding their classification as securities.

Impact on Crypto ETFs and Altcoins

Should the SEC decide to remove Solana and other tokens from its securities list, it could positively impact crypto exchange-traded funds (ETFs) tied to altcoins. This potential change aligns with recent filings by VanEck and 21Shares for spot Solana ETFs in the U.S.

The SEC’s proposed amendments were disclosed to the defendants late on July 29, suggesting additional changes beyond the initial token classifications. Defendants have expressed concerns over the SEC's new language and its implications for the discovery process.

Defendants' Response and Legal Proceedings

The defendants, including Binance, have disputed the SEC's proposed amendments. They argue that they cannot agree to begin discovery until they review the amended complaint. This dispute highlights ongoing tensions between the SEC and the defendants over the scope and timeline of the legal proceedings.

The legal battle against Binance and Zhao has seen various developments. A federal judge recently dismissed some charges but allowed others to proceed, including those related to Binance.US and Zhao’s personal involvement. The SEC’s case against Zhao is distinct from his criminal charges related to sanctions violations.