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SEC withdraws claims that ADA, MATIC, and SOL are securities in its Binance lawsuit

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8 months ago

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SEC retracts request to classify ADA, MATIC, and SOL as securities in Binance suit
  • SEC retracts request to classify ADA, MATIC, and SOL as securities in Binance suit.
  • Affected tokens include ADA, MATIC, SOL, BNB, BUSD, and others.
  • The shift in SEC’s stance follows increased pro-crypto political support in the US.

In a notable shift in regulatory stance, the US Securities and Exchange Commission (SEC) has withdrawn its request for a court ruling to classify certain cryptocurrencies, including Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL, as securities in its ongoing lawsuit against the cryptocurrency exchange Binance.

This development marks a significant change in the SEC’s approach to the classification of these digital assets.

SEC no longer views ADA, SOL and MATIC as securities

On July 30, 2024, the SEC filed a response to the court’s minute order issued on July 9, 2024. In the filing, the SEC indicated its intention to amend its complaint concerning what it previously referred to as “Third Party Crypto Asset Securities” in its opposition to Binance’s motion to dismiss.

By retracting this request, the SEC has effectively removed the need for a judicial ruling on whether these tokens should be classified as securities at this time.

While the immediate tokens affected by this retraction are ADA, MATIC, and SOL, other prominent cryptocurrencies such as Binance Coin (BNB), Binance USD (BUSD), Cosmos(ATOM), The Sandbox(SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI.

SEC’s retraction follows the SEC’s earlier stance, which had identified at least 68 tokens as securities, impacting a significant portion of the cryptocurrency market valued at over $100 billion.

SEC’s move coincides with increased pro-crypto political support in the US

The SEC’s change of stance appears to be influenced by recent political developments as the US Presidential candidates increasingly voice pro-crypto sentiments, impacting regulatory attitudes.

Former President Donald Trump, in his election campaign, has pledged to end the so-called “war on crypto” and expressed intentions to replace SEC Chair Gary Gensler with a more crypto-friendly figure.

Concurrently, members of the Democratic Party have advocated for a more progressive approach to digital assets.

This adjustment by the SEC underscores a broader, evolving narrative in US regulatory attitudes towards cryptocurrencies, reflecting a growing recognition of the sector’s significance and potential.

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Regulation

Cash App’s Block Inc Settles for $40 Million Over AML Failures For Crypto Platform

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1 hour ago

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April 10, 2025

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Block, Inc., the company behind Cash App, has reached a $40 million settlement with the New York Department of Financial Services (NYDFS). The penalty follows an investigation into the company’s failure to maintain proper anti-money laundering (AML) compliance.

The NYDFS found that Block had significant issues with its AML program, particularly with its handling of Bitcoin transactions and customer due diligence.

Block Inc. Settles for $40 Million Over AML Failures

According to the NYDFS, Block’s AML compliance program had several critical flaws. The regulator pointed out that Block failed to implement sufficient controls to prevent money laundering and other illicit activities. 

The investigation revealed inadequate customer due diligence, especially regarding Bitcoin transactions, which allowed largely anonymous transactions to go unchecked.

According to Adrienne A. Harris, the NYDFS Superintendent, “Compliance functions require growth in order to scale with the size and scale of the company.” The department also pointed out that between 2019 and 2020, Block’s extent of growth inevitably brought about a backlog, particularly with transaction alerts and responses, which were not treated immediately. This led to more transaction volume flow, hence compromising the site’s capabilities and making it vulnerable to criminal activities.

Previous Settlements and Efforts to Improve Compliance

This fine is the second recent sanction of Block for alleged AML failings. Earlier this year, the company settled a similar issue by paying $80 million to 48 state regulators in January. Moreover, another firm, OKX, faced a $1.2M fine in Malta over allegations of breaching AML regulations.

Block, in a statement, also noted that “Cash App has invested large amounts of both financial and other capital into compliance remediation and improvements.” However, the company failed to accept the findings of the report produced during the investigation. Instead, it sought to assure customers that it had taken note of the violations and was working on fortifying its compliance mechanisms to avoid such mishaps.

As part of the settlement terms and conditions, Block’s management has to appoint an independent monitor. This monitor will be tasked with assessing the company’s compliance program progress. These measures will remain ongoing, as the NYDFS will monitor Block’s compliance with regulatory expectations moving forward.

Cash App Under Scrutiny as Crypto Regulations Tighten

Block, Inc. operates Cash App, a peer-to-peer payment service that also allows users to buy, sell, and transfer Bitcoin. Cash App has been regulated under the NYDFS as a virtual currency business since 2018. 

The company’s growing role in the cryptocurrency market has made it subject to increased regulatory scrutiny, especially in light of the rapid rise in popularity of Bitcoin and other digital assets. However, addressing Bitcoin’s status, Jack Dorsey warned that limiting BTC’s use case to a digital equivalent of gold could lead to its “irrelevance.”

Concurrently, in addition to settling the latest AML case, Block recently launched a new open-source toolkit aimed at helping companies better manage their Bitcoin treasury holdings. The toolkit includes a corporate Bitcoin holdings dashboard and a real-time BTC-to-USD price quote API.

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Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US Senate Confirms Pro-Crypto Paul Atkins As SEC Chair

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17 hours ago

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April 10, 2025

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The US Senate has finally confirmed Donald Trump’s nominee, Paul Atkins, as the next US Securities and Exchange Commission (SEC) Chair. This development is significant as Atkins has promised to provide regulatory clarity for the industry, which was lacking under past Chair Gary Gensler’s administration.

US Senate Confirms Paul Atkins As SEC Chair

In an X post, Journalist Eleanor Terrett revealed that the US Senate has confirmed Paul Atkins as the next SEC Chair. The Upper Chamber voted 52 to 44 in favor of Atkins’ nomination for the SEC role.

Pro-Bitcoin and Republican Senator Cynthia Lummis also confirmed this development, sharing her excitement about Atkin’s confirmation as the SEC Chair. The Senator revealed her discussion with him about digital asset legislation and affirmed that she is confident that his leadership will bring positive change.

As CoinGape reported, Paul Atkins had promised during his nomination hearing to prioritize providing regulatory clarity for the crypto industry. The incoming SEC Chair also promised to repair the Commission’s image following Gensler’s infamous regulation-by-enforcement approach.

Paul Grewal, the Chief Legal Officer (CLO) of the top crypto exchange, Coinbase, also congratulated Atkins on his confirmation. He stated that more progress is “sorely needed” after four years of regress.

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Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC Makes Important Move in Ripple Case, Here’s All

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2 days ago

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April 8, 2025

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XRP Lawsuit: The U.S. Securities and Exchange Commission (SEC) has filed an opposition to a recent emergency request submitted by Justin W. Keener in the Ripple lawsuit. Keener’s filing aimed to present what he called “decisive evidence” in support of Ripple and the “liberty of the American people.”

US SEC Opposes Keener’s Request Over Jurisdiction and Procedure

According to a recent filing, the US SEC asked Judge Analisa Torres to reject the emergency request filed by Justin W. Keener on April 3, 2025. The agency argued that the District Court does not have jurisdiction to consider the request since the Ripple case has already been moved to the Second Circuit Court of Appeals.

The SEC used several authorities from different courts as the basis of their decision, specifically citing New York v. Department of Homeland Security, 974 F.3d 210 (2d Cir. 2020). The Commission explained that this be the position once a timely appeal is filed that the matters under appeal are beyond the jurisdiction of the District court.

The SEC also pointed out that Keener did not file the appropriate motion to intervene in the case he deemed to involve unlawful conduct by the defendants. They argued that this means that the court cannot consider his request for an emergency stay. They cited other cases where such a motion by the third party without the permission of the court was thrown out of court.

SEC Maintains Ripple Can Handle Its Defense Without Outside Help

In its reply, the US SEC stated that even if the provided evidence of Keener was relevant, Ripple could decide to present it on its own. The agency suggested that Ripple and its legal team know the kind of documents that are useful in the XRP lawsuit on their own.

The Commission added, “There does not seem to be any provision that the Request’s filer cannot forward the ‘evidence’ listed in the Request to the Defendants.” They responded that Ripple could produce any such material if it considered it to be relevant.

The US SEC also reminded the court that a previous request from third parties to submit similar evidence had already been denied. In that instance, Judge Torres ruled that no further intervention from unrelated parties was needed.

Details of Keener’s Emergency Request Remain Unclear

Keener, who has faced separate SEC charges in the past, submitted a brief letter claiming he possessed key evidence in support of Ripple.

He said the material could help the defendants and promote “liberty for the American people,” but he did not give specifics.

While some observers believe the evidence may relate to physical investment contracts, Keener has not confirmed this. The document raised questions in the Ripple community, especially since the case appears to be nearing an end.

XRP Lawsuit Nears Conclusion as SEC Drops Appeal

The SEC’s opposition comes after recent announcements that the legal dispute with Ripple is coming to a close. Ripple CEO Brad Garlinghouse confirmed that the XRP lawsuit has officially ended. This followed the SEC’s decision to drop its appeal in the ongoing case. This move boosted optimism since as of now, around 20 XRP exchange-traded funds (ETFs) are reportedly filed with the US SEC.

Despite the news, XRP’s price did not show a strong positive reaction. Still, many in the crypto community believe the conclusion of the lawsuit may bring new developments for Ripple.

However basking under the XRP lawsuit dismissal, Ripple recently announced a $1.25 billion deal to acquire Hidden Road, a global multi-asset prime broker. This would make Ripple the first crypto firm to own and operate such a platform.

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Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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