The SEC’s reversal of its decision had a huge impact on the crypto market. Previously, the SEC wanted to classify various tokens such as Solana, Cardano, Polygon as securities in the lawsuit it filed against Binance.

However, on July 30, the SEC stated in its response to the court decision issued on July 9, 2024 that it no longer requested that these tokens be considered securities.

The SEC plans to amend its complaint regarding “Third Party Crypto Asset Securities” alleged in the lawsuit and drop its request for these tokens to be considered securities.

This eliminates the need for the SEC to make a decision on the sufficiency of claims regarding these tokens at this time. That is, the government agency is not seeking a court decision on whether these tokens are securities or not.

The tokens accused in the SEC’s lawsuit against Binance include BNB, Binance USD (BUSD), Solana, Cardano, Polygon, Cosmos, The Sandbox, Decentraland, Axie Infinity and COTI (COTI). These tokens are included in a broader list of what the SEC considers to be securities.

In June 2023, the SEC indicted at least 68 tokens as securities worth more than $100 billion in total in the crypto market. These wide-ranging accusations revealed the seriousness and scope of the SEC’s approach towards crypto assets.

The SEC’s withdrawal of its request also reflects the growing interest in cryptocurrencies in the political arena in the United States. On July 27, former president and presidential candidate Donald Trump promised that the war on cryptocurrencies would end and that the United States would become the “crypto capital of the planet.”

At the Bitcoin 2024 conference held in Nashville, Tennessee, Trump stated that the United States will take a leading role in cryptocurrencies and announced that he plans to dismiss SEC Chairman Gary Gensler and create a crypto and Bitcoin presidential advisory board on his first day.

Trump emphasized that the new president will help America “build the future” and will not “obstruct the future.”

On the other side of the political spectrum, views on cryptocurrencies are also changing. On the same day, Democratic members of the US House of Representatives signed a letter to take a “forward-looking approach” on blockchain and digital assets. This letter points to a more positive policy change regarding cryptocurrencies.

Advisors to presidential candidate and current Vice President Kamala Harris have reached out to crypto companies in an attempt to repair the party’s relations with the crypto industry. These steps show that the influence of cryptocurrencies on US politics is increasing and that both major political parties are starting to take notice of developments in this area.

The SEC’s decision to withdraw its decision on crypto tokens reflects the uncertainties and changing regulatory environment in the crypto world. These developments could be an important turning point for both investors and other stakeholders in the industry.