$SOL Rallies As SEC Backtracks on Securities Claim

• The US Securities and Exchange Commission (SEC) has withdrawn its claim to classify Solana ($SOL), Cardano ($ADA), and Polygon ($MATIC) as securities in the Binance lawsuit.
• The SEC has 30 days from the court's scheduling order to submit its motion to amend.
• Following the news, $SOL dropped by 5%, with $ADA and $MATIC losing 4% and 1%, respectively, over 24 hours.

In an about-turn, the SEC has reversed its request to classify specific cryptocurrencies as securities, including $SOL, $ADA, and $MATIC.

The new development may offer some relief from the regulatory uncertainty surrounding the affected cryptocurrencies.

This softening stance comes after a recent court ruling dismissing the SEC's claim that secondary sales of $BNB (Binance's token) constitute securities. Following this news, $BNB's price rose by 1.8%.

Let's explore what this means for the cryptocurrencies affected.

SEC Withdraws Securities Classification Request

In a lawsuit against Binance in June 2023, the SEC requested legal judgment to define specific cryptocurrencies, including $SOL, $ADA, and $MATIC, as securities.

However, yesterday, the SEC filed a new court order, indicating its desire to withdraw its previous request. On the same day, the SEC and Binance came to an agreement, giving the SEC 30 days from the Court's order to amend the complaint. This slight respite gives both parties time to negotiate and hopefully resolve the matter.

By reversing the classification, the SEC has sparked chatter that the move could benefit the launch of Solana ETFs.

$SOL Rallies Despite Mixed Market Sentiment

On July 29, $SOL reached a four-month high of $193, surging 16% from July 25. However, the price dropped to $176 after the news of the SEC's reversal.

$ADA and $MATIC also witnessed losses over the past 24 hours of 0.28% and 1.15%, respectively.

Investor concerns surrounding the outcome of the SEC's actions may be what's affecting the cryptocurrencies' prices to drop.

However, $SOL's price has since rallied to $183, suggesting the market believes the SEC's decision will help clarify cryptocurrency regulations.

sol to $1k easily lol

- Yelo (@yelotree) July 30, 2024

Summing Up

While this news does offer some hope, other SEC actions have had serious consequences, such as Rebolut and Robinhood delisting the tokens targetedstating regulatory risks.

The situation is unpredictable, and it's possible the SEC could change its claims again based on market developments and future legal analysis.

References

Click to expand and view sources

• SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao (SEC)
• United States District Court for the District of Columbia (CoinMarketCap)
• Solana Price Today (CoinMarketCap)
• Cardano Price Today (CoinMarketCap)
• Polygon Price Today (CoinMarketCap)

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