SEC’s Withdrawal in Binance Case Doesn’t Clear Solana of Security Status

On July 30, the SEC retracted its request for a court to rule on whether Solana (SOL) qualifies as a security in its ongoing lawsuit against Binance.

This decision has sparked some confusion, with industry observers cautioning against interpreting the withdrawal as an indication that Solana is no longer considered a security.

According to Jake Chervinsky of Variant Fund, the SEC’s stance on Solana and similar tokens remains uncertain, as they continue to be classified as securities in other litigation, such as the case against Coinbase.

Miles Jennings of a16z Crypto and Justin Slaughter from Paradigm also support this view, suggesting that the SEC’s withdrawal might reflect a strategic shift rather than a definitive ruling on Solana’s status.

Jennings highlighted that Judge Amy Berman Jackson’s stringent standards in the Binance case may have made it impractical for the SEC to pursue securities claims. Meanwhile, Judge Katherine Polk Failla’s more favorable disposition in the Coinbase case could influence the SEC’s approach in other legal actions.