A complaint filed by the US Securities and Exchange Commission (SEC) against Binance, the largest cryptocurrency exchange in the world, and its CEO Changpeng Zhao (CZ), claims that a number of well-known cryptocurrencies, including Cardano (ADA), Solana (SOL), and Polygon (MATIC), are unregistered securities.
Notably, the complaint classifies BNB and BUSD, two of Binance’s own currencies, as securities, heightening the seriousness of the issue.
Among the several crypto asset stocks listed in the lawsuit’s long list are FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.
The lawsuit also notes that Binance offered for trading cryptocurrencies including AMP, REP, UST, and TRX coins that have previously been the target of SEC enforcement proceedings, demonstrating a pattern of potentially careless disregard for securities rules.
Notably absent from the list are Ethereum (ETH) and Litecoin (LTC). SEC Chair Gary Gensler previously stated that he considered the leading cryptocurrency, Bitcoin (BTC), to be a commodity, but that the bulk of tokens now in use are unregistered securities.
According to U.Today, the SEC has filed a lawsuit against Binance, the largest cryptocurrency exchange in the world, and its CEO for suspected breaches of U.S. securities laws. The cryptocurrency giant is accused in the case of selling unregistered crypto asset securities and providing unregistered trading platforms for securities. Furthermore, it claims that Binance inappropriately commingled and diverted billions of dollars in client funds while surreptitiously controlling U.S. operations to help high-value U.S. customers avoid limits.
