The SEC (The US Securities and Exchange Commission) has expanded its list of cryptocurrencies classified as securities, as part of its ongoing lawsuit against Binance. Among the newly targeted tokens are Axie Infinity (AXS), Filecoin (FIL), and Decentraland (MANA). This move is part of the SEC’s broader efforts to impose stricter regulations on the crypto industry, aimed at enhancing investor protection. The commission argues that these digital assets meet the definition of securities under US law, which requires platforms like Binance to comply with existing regulations. The lawsuit against Binance reflects the Commission’s increasing scrutiny of crypto exchanges and their offerings, which it claims are often sold without proper registration and disclosure. By targeting high-profile tokens like AXS, FIL, and MANA, the commission aims to set a precedent for the treatment of other similar assets in the future. These actions are seen as part of a larger regulatory crackdown on the crypto sector, with the commission focusing on what it sees as unregulated securities trading in digital assets. As the legal battle continues, market participants are closely watching for potential impacts on other tokens and platforms, as well as the evolving regulatory landscape for cryptocurrencies in the United States.
SEC Includes More Tokens As Securities
The SEC has expanded the list of crypto tokens it viewed as securities in the Binance lawsuit. In a recent filing, the financial regulator included AXS, ATOM, FIL, MANA and SAND. The SEC alleges that Binance offers trading services to these unregistered securities against the rules.
“If Defendants are correct, no resales of “investment contracts” could ever satisfy the Howey test, even if nothing has changed about the economic realities of these transactions. It would erase the term “investment contract” in the context of the Exchange Act, even though the Act’s focus is precisely on transactions in secondary markets—i.e., resales from investors to investors—and even though the Supreme Court has explicitly stated that the term “investment contract” is identical in both acts”
Claims that Binance operated illegally as an unregistered exchange and broker-dealer have also been at the center of the case. The Commission also filed cases against Coinbase and other crypto exchanges as it increased regulatory scrutiny over the industry. Recently, the regulator filed to amend its complaint against Binance and Changpeng Zhao. This sparked a new conversation on the stance of United States regulators.
Possible Impact on Tokens
The ongoing legal proceedings against Binance have coincided with positive sentiments in the crypto market, leading to noticeable upticks in prices. Despite this optimism, regulatory actions are significantly affecting cryptocurrency prices, as they create uncertainty and slow down investments in the sector. Consequently, market stakeholders are amplifying their calls for clearer regulations that can foster innovation and growth within the cryptocurrency landscape.
In particular, the cryptocurrencies named in the commission lawsuit are experiencing gains today. Over the past 24 hours, the price of Axie Infinity (AXS) has increased by 2.6%, trading at approximately $4.81. Similarly, Filecoin (FIL) has seen a rise of 2.2%, now priced at around $3.73. These upward movements reflect a resilient market, despite the looming regulatory scrutiny. Additionally, crypto bulls are expressing optimism over potential interest rate cuts in the United States, which they believe could further stimulate investment in the crypto space.
Investors are closely monitoring the developments surrounding Binance and the commission ‘s actions, as these could set critical precedents for the treatment of digital assets in the future. The calls for more transparent regulations resonate with many market participants who are eager for a framework that allows for both compliance and innovation. As the situation evolves, the interplay between regulatory actions and market sentiment will likely continue to shape the dynamics of the cryptocurrency market, influencing both short-term price movements and long-term investment strategies.
