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 the original 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, a proposed amended complaint, and a redline version the changes are highlighted.
Paul Grewal, Chief Legal Officer at Coinbase, commented on the SEC’s amended complaint via social media. “The SEC regrets any confusion it may have caused by falsely and repeatedly stating that tokens themselves are securities,” he noted, highlighting footnote 6 of the amended complaint. He questioned the SEC’s long-standing position, stating:
“The SEC has absolutely ‘insisted’ that tokens themselves are securities, evident from the long track record of their regulation through enforcement campaign. Why mislead the Court?”
Grewal shared an excerpt from the complaint, which clearly states the SEC’s regret.
Grewal also addressed the SEC’s approach to Ethereum (ETH) transactions, noting that the agency is unclear on how ETH transactions have meaningfully changed compared to other digital assets under scrutiny.
He noted:
“Somehow, ETH transactions have changed in a meaningful way that the Ten Crypto Assets have not, to avoid the agency’s clutches. How? That’s apparently for the SEC to know, and for the rest of us to find out on our own if and when we get sued.”
According to the amended complaint, the filing references additional documents, including an order denying defendants’ motion to dismiss in a related case, SEC v. Payward, Inc. (Crack). Procedural deadlines have been set, requiring Binance and its co-defendants to respond by October 11, either by opposing the SEC’s motion or filing a consent notice.
Legal analysts suggest the SEC’s amendment could be an attempt to strengthen its case amid criticism over regulatory clarity. The agency has faced continued criticism from industry participants who claim its enforcement actions lack transparent guidelines for what constitutes a security in crypto.
Binance is under regulatory pressure from the SEC, which claims the platform operated unregistered stock exchanges and misled investors. The exchange has consistently denied these allegations and emphasized its commitment to compliance and cooperation with regulators.
The deadline for Binance and its co-defendants to respond to the SEC’s amended complaint sets the stage for a significant legal showdown ahead of the US elections, where crypto regulation is becoming increasingly important.
Industry demand for regulatory clarity continues to grow, with many calling for definitive guidance rather than enforcement action as the primary means of regulation.