The U.S. Securities and Exchange Commission (SEC) has filed an amended complaint against Binance in the District of Columbia, introducing procedural updates and legal changes to its initial filing.
The amendment, approved this morning, includes a motion under Federal Rule of Civil Procedure 15(a)(2), accompanied by a memorandum explaining the reasons for the changes, an amended proposed complaint and a red-letter version highlighting the changes.
Paul Grewal, Coinbase’s chief legal officer, commented on the SEC’s amended complaint via social media. “The SEC regrets any confusion it may have caused by repeatedly and incorrectly stating that the tokens themselves are securities,” he noted, pointing to footnote 6 of the amended complaint. He questioned the SEC’s long-held position, stating:
“The SEC has absolutely “maintained” that the tokens themselves are securities, which is clear from its long campaign of regulatory enforcement. Why mislead the Court?”
Grewal shared an excerpt from the complaint, which makes clear that the SEC admitted its regret.
Grewal also addressed the SEC’s approach to Ethereum (ETH) transactions, highlighting the agency’s lack of clarity on how ETH transactions have significantly changed compared to other digital assets under review.
He noted,
“Somehow, ETH transactions changed significantly, unlike the ten cryptoassets, in order to escape the agency’s clutches. How? Apparently, that’s for the SEC to figure out, and the rest of us will only find out if and when we get sued.”
According to the amended complaint, the filing references additional documents, including an order denying the defendants’ motion to dismiss in a related case, SEC v. Payward, Inc. (Kraken). Procedural deadlines have been set, with Binance and its co-defendants required to respond by October 11, either by opposing the SEC’s motion or by filing a notice of consent.
Legal analysts suggest the SEC’s amendment may be an attempt to bolster its position in the face of criticism over regulatory clarity. The agency has faced scrutiny from industry players who argue that its enforcement actions lack transparent guidelines on what constitutes a cryptocurrency security.
Binance has faced regulatory pressure from the SEC, which accuses the platform of operating unregistered securities exchanges and misleading investors. The exchange has consistently denied the allegations, stating its commitment to compliance and cooperation with regulators.
The deadline given to Binance and its co-defendants to respond to the SEC’s amended complaint sets the stage for a major legal showdown ahead of the U.S. election, where cryptocurrency regulation is becoming increasingly important.
Industry demand for regulatory clarity continues to grow, with many players calling for definitive guidance rather than enforcement action as the primary means of regulation.
