On July 30, the SEC withdrew asking the court to rule on whether Solana and other tokens are securities in the Binance case. However, this does not mean that Solana will not be considered a security.

Jake Chervinsky, general counsel of crypto-focused venture capital firm Variant Fund, wrote in a July 30

Chervinsky’s post references the U.S. Securities and Exchange Commission’s recent response requesting to amend its complaint titled “Third Party Crypto Asset Securities.” The SEC withdrew its request to determine whether the tokens in question were securities, but that does not mean the tokens were not considered securities.

Chervinsky suggested that the SEC’s move could be a “litigation tactic,” but did not elaborate on what that tactic might be. He emphasized that the SEC continues to view the same tokens as securities in other crypto exchange cases, including its case with Coinbase.

This situation shows that the SEC has not made a clear decision on whether tokens are securities or not, and instead may make strategic moves that will change the course of the case.

Miles Jennings, general counsel and head of decentralization at a16z Crypto, and Justin Slaughter, Paradigm’s director of policy, appear to share similar views on this issue. Slaughter noted that many people are over-interpreting the SEC’s filing, which does not mean the SEC has determined that Solana and other tokens are not securities.

Jennings explained that Judge Amy Berman Jackson set her high standards for applying the Howey test in the Binance case, so it was unnecessary for the SEC to spend time and effort deciding that these tokens were securities.

The Howey test is a standard used to determine whether an asset is a security, and applying this test can be quite challenging for the SEC. According to Jennings, the idea that the SEC will not be successful in applying this test may cause it to spend less effort on this issue.

It is stated that Judge Katherine Polk Failla is more “inclined” to the SEC’s opinion in the Coinbase case, and therefore it is stated that it is unnecessary to make the same request made in the Binance case. This means that the SEC may get a more positive result in the Coinbase case, and therefore the request in the Binance case may not be effective.

Jennings stated that he was not convinced that the SEC had built a case that would establish a strong enough connection between token sales and token issuers’ governance efforts.

He stated that he thought the SEC did not make a strong enough case to determine whether the tokens were securities, adding that these speculations were based on the SEC’s behavior behind closed doors.

In its lawsuit against Binance, the SEC claimed that several tokens such as Solana, BNB, Cardano, Polygon, The Sandbox, Decentraland and Axie Infinity were securities.

The SEC had previously stated that at least 68 tokens were securities, affecting more than $100 billion of cryptocurrencies in the markets. This situation calls into question whether the SEC has a definitive stance on classifying crypto assets and tokens as securities.