- Over the agency’s choice to halt its arguments over Solana’s security status, some legal experts are optimistic, while others are not so sure.
One of the main opponents of the cryptocurrency sector seems to be giving up on supporters of the industry earlier this week: In its well-known legal battle against Binance, the Securities and Exchange Commission (SEC) of the United States modified a complaint to drop claims that Solana, Cardano, and Ethereum scaling network Polygon are unregistered securities.
Is it possible that the SEC, which gave up on Ethereum’s security classification earlier this year, is also giving up on Solana? Could Solana ETFs, which were previously unimaginable under the current government, suddenly be approaching?
To be clear, that does not suggest that the SEC’s decision to halt the claims against Solana is inconsequential, according to George Mason University law professor J.W. Verret.
If the SEC believed they could prevail with the judge on that claim, they would not have taken that action.
In the Binance case, the SEC continued to press charges against Solana and other cryptocurrency coins. It only withdrew them temporarily, retaining the authority to relitigate them whenever it pleased. Verret also noted that the government continues to argue in ongoing legal proceedings before various courts—including its lawsuit against Coinbase—that Solana is a security.
For these reasons, the development seemed relatively ordinary to another legal expert who was familiar with the case and who wished to remain anonymous in order to talk freely.
In a section of the joint petition, Binance’s lawyers, for example, stated that they were not notified until 11:53 p.m. the night before they were supposed to respond to the judge that the SEC wanted to stop its claims against Solana, Cardano, and Polygon. As far as the legal expert is concerned, that is fairly abnormal behavior.
At 11:53 p.m., the SEC is mucking around—what the fuck is that? they declared. Individuals in government are not often the kind to take on tasks at midnight.
They believe that the SEC is struggling to decide how to handle its high-stakes portfolio of cryptocurrency claims, as evidenced by the fact that the agency made such a significant decision so unexpectedly close to an impending deadline.
The source claimed, “They don’t know what they’re doing here.” They are aware that their time is running out. The senior folks are probably asking themselves: How do we use our resources in the instances we have with the short time we have?
Such hypotheses are undoubtedly but theories. The SEC is still a mystery, with specialists having to deduce the agency’s tactics from the occasionally contradictory claims it makes in its several legal actions.
Some factors that seem to be influencing the SEC’s actions have gained attention in recent months. Washington politics seem to have had an impact on the regulator’s quick reversal on spot Ethereum ETFs.
Furthermore, given that SEC head Gary Gensler’s unpopularity has become a hot topic of discussion in the 2024 presidential race, it is reasonable to surmise that the agency’s current leadership is aware that there is a finite amount of time to handle its backlog of cryptocurrency cases.
Ultimately, though, Verret thinks that the ongoing battle over U.S. crypto policy won’t be resolved until a case makes it all the way to the U.S. Supreme Court due to the SEC’s blatant inconsistent approach to litigating various crypto companies in different locations.
Others have begun to reach the same conclusion, as cryptocurrency exchanges, DeFi ventures, and NFT developers fight the SEC for survival across the nation.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
