SEC Expands Binance Lawsuit, Labeling AXS, FIL, and ATOM as Securities
CryptoNewsTerminal Staff13 Sep, 2024
SEC Expands Binance Lawsuit, Labeling AXS, FIL, and ATOM as Securities
The U.S. Securities and Exchange Commission (SEC) has intensified its lawsuit against Binance by recently updating its claims. The SEC now argues that three popular cryptocurrencies, namely Axie Infinity (AXS), Filecoin (FIL), and Cosmos (ATOM), should be classified as securities under the law. This amended argument by the SEC signifies a significant development in the ongoing legal battle with Binance, which was initially filed in July 2022. The SEC had previously alleged that Binance violated securities laws by selling these digital assets without proper registration. In its updated complaint, the SEC asserts that these cryptocurrencies meet the definition of securities as they represent investment contracts. Specifically, the SEC maintains that AXS, FIL, and ATOM possess characteristics that indicate an expectation of profit derived from the efforts of a third party, which in this case is Binance. The SEC's expanded arguments in this lawsuit have the potential to reshape the regulatory landscape for cryptocurrencies, particularly those that exhibit characteristics similar to traditional securities. The outcome of this case will be closely watched by the crypto industry and legal experts alike.
