The U.S. Securities and Exchange Commission (SEC) ultimately failed to classify Solana (SOL) as a non-security, despite the withdrawal of a request for a court ruling on the matter as part of an ongoing lawsuit against Binance.
In a recent post on X, Jake Chervinsky, chief legal officer at cryptocurrency-focused venture capital firm Variant Fund, noted that “there is no reason to believe that the SEC has deemed SOL a non-security.”
“The fact that they don’t want to carry out the disclosure of more than a dozen tokens in the Binance case seems to be a court tactic, not a change in policy,” – He added.
SEC seeks Amed complaint against Binance
Chervinsky’s statements came in response to the SEC’s latest court filing, which sought to amend its complaint regarding “Third Party Crypto Asset Securities.” The SEC’s updated position indicated that it was no longer seeking a court ruling on whether the tokens named in the lawsuit, including Solana, are securities.
Supporting Chervinsky’s perspective, Miles Jennings, general counsel and head of decentralization at a16z Crypto, and Justin Slaughter, director of policy at Paradigm, also expressed their views on the matter.
Slaughter cautioned against overinterpreting the SEC’s latest proposal, saying it does not mean a final decision on Solana’s security status.
Jennings explained that Judge Amy Berman Jackson set a high threshold for establishing the Howey test in the Binance case, which may have influenced the SEC’s decision to withdraw the application. “Of course, I’m speculating about their political motives, but that speculation is based on information I have access to regarding the SEC’s behavior behind closed doors,” he – He added.
The SEC’s lawsuit against Binance listed several tokens, including Solana, Binance Coin (BNB), Cardano (ADA), Polygon (MATIC), The Sandbox (SAND), Decentraland (MANA) and Axie Infinity (AXS), as securities.
At various times, the SEC has identified at least 68 tokens as securities, affecting more than $100 billion worth of cryptocurrencies in the market.
