The US SEC expanded the list of tokens in its securities classification in the Binance lawsuit. This may potentially affect the price of these tokens.
In the Binance lawsuit, the United States Securities and Exchange Commission (SEC) has incorporated supplementary tokens into its securities classification.
Axie Infinity (AXS), Filecoin (FIL), and Decentraland (MANA) are among the crypto assets. Citing investor protection, the Commission continues its regulatory assault on the crypto market.
US SEC classifies additional tokens as securities
The US SEC has broadened the list of crypto tokens it considers securities in the Binance lawsuit. AXS, ATOM, FIL, MANA, and SAND were all included in a recent filing by the financial regulator. The Securities and Exchange Commission (SEC) contends that Binance violates regulations by providing trading services to these unregistered securities.
“Even if the economic realities of these transactions remain unchanged, no resales of “investment contracts” could ever satisfy the Howey test if the Defendants are correct.”
It would eliminate the term “investment contract” from the Exchange Act’s context, even though the Act’s primary focus is on transactions in secondary markets, specifically resales from investors to investors, and the Supreme Court has explicitly stated that the term “investment contract” is identical in both acts.
The case has also been centered on allegations that Binance operated fraudulently as an unregistered exchange and broker-dealer. The Commission also lodged cases against Coinbase and other crypto exchanges to intensify regulatory oversight of the industry.
The regulator recently requested that its complaint against Changpeng Zhao and Binance be amended. This initiated a new dialogue regarding the regulatory posture of the United States.
Potential Effects on Tokens
The crypto market has experienced market upticks amid the expansion of the case against Binance, as sentiments remain positive.
Nevertheless, regulatory actions impact crypto prices by slowing down investment in the sector. Consequently, stakeholders in the market are stepping up their efforts to advocate for more transparent regulations to stimulate innovation.
Today, the cryptocurrency listed in the SEC’s lawsuit has experienced an increase in value. In the past 24 hours, the price of AXS has increased by 2.6% to trade at $4.81, while FIL has experienced a 2.2% increase to trade at $3.73. Additionally, crypto enthusiasts propose that the anticipated interest rate reductions in the United States will enhance the market’s momentum.
