US SEC Amends Original Complaint Against Binance, Ripple CLO Reacts

US SEC amends Binance lawsuit regarding "crypto asset securities" Ripple CLO Stuart Alderoty and Coinbase CLO Paul Grewal proclaims win.
By Varinder Singh
US SEC Amends Original Complaint Against Binance Ripple CLO

Highlights

  • US SEC filed a motion to amend the original complaint regarding "crypto asset securities" in Binance lawsuit.
  • The SEC regrets using crypto asset securities and agrees that 10 tokens are not securities in themselves.
  • Coinbase CLO Paul Grewal explained the SEC will continue to challenge securities allegations against the 10 tokens.

In the latest development in the U.S. SEC lawsuit against Binance, Binance.US, and co-founder Changpeng Zhao, the government agency requested the court to amend its complaint. The filing came in response to a district court order denying crypto exchange Kraken’s motion to dismiss in SEC v. Payward case. Ripple CLO Stuart Alderoty reacts as the agency regrets using “crypto asset securities” in cases and agrees that 10 tokens are not securities in themselves.

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US SEC Files to Modify Complaint in Binance Case

In the latest District Court of Columbia filing in SEC vs Binance, the plaintiff the U.S. Securities and Exchange Commission filed a motion for leave to amend the original complaint regarding “crypto asset securities.”

The regulator has submitted the proposed amended complaint (PAC), a redline comparing the PAC to the original complaint, and, for the court’s reference because it is not yet published on widely available legal databases, the order denying defendants’ motion to dismiss in Kraken vs SEC lawsuit.

US SEC v Binance

Binance is required to file either an opposition or notice of their consent to the SEC’s request by October 11 this year. The agency will continue its regulation by enforcement approach to assert control over the crypto industry.

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Coinbase & Ripple CLOs React to SEC Filing

Coinbase chief legal officer (CLO) Paul Grewal took to X and shared a footnote in the proposed amended complaint by the SEC against Binance. He pointed out that “The SEC regrets any confusion it may have invited” by falsely and repeatedly stating that 10 tokens including SOL, ADA, MATIC are securities in themselves.

He mentioned Ripple CLO Stuart Alderoty in the post citing a notable shift in the SEC’s approach or clarification on its stance regarding the use of the term “crypto asset securities.” Recently, Ripple CLO challenged the thinking of regulators against crypto regarding money laundering.

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He further added that ETH has somehow come out of the SEC’s scrutiny but the 10 tokens have failed to avoid the regulator’s nuanced approach towards crypto. The agency will continue to allege the 10 crypto assets at issue in secondary markets and also that they are sold as investment contracts.

Ripple CLO Stuart Alderoty reacted and said “crypto asset security” is a made-up term. The government agency continued to manipulate the courts with its twisted terms instead of providing clarity.

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Varinder Singh
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
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