SEC Intends to Amend Complaint Against Third Party Tokens (Like SOL) in Binance Case

Third-party tokens are digital assets alleged to be unregistered securities by the SEC that were issued by various companies not named Binance.

The U.S. Securities and Exchange Commission (SEC) may be dropping it's charges against so-called third-party tokens, such as Solana's (CRYPTO: SOL) SOL and Polygon's (CRYPTO: MATIC) MATIC, which have been part of its case against Binance (CRYPTO: BNB), according to a court filing early Tuesday morning.

The development comes after a hearing on July 9, where attorneys for Binance said they interpreted Judge Amy Berman Jackson's June 28 ruling on Binance's motion to dismiss the SEC's case as moving third-party tokens out of the case, CoinDesk reported earlier.

However, the Judge made it clear that this was not her intention. Third-party tokens are digital assets issued by various companies apart from Binance, that were listed by the crypto exchange.

The 10 tokens named in the complaint are SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI. The SEC alleged that these tokens are unregistered securities.

Tuesday's filing was a court ordered joint response to the positions of both sides on how to proceed further. It was expected that the judge would review what role third-party tokens may play in the SEC's ongoing case against Binance.

Instead, the SEC appears to have changed its position and is now intending to drop that part of its allegations. This has resulted in the defense wanting to see the amended complaint before allowing the process of discovery.

"Until defendants have a set of proposed amended allegations in front of them, it is premature and unreasonable for the SEC to expect them to agree to conduct merits discovery for claims on which the SEC may soon seek leave to amend its allegations," the filing said.

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