The US SEC has expanded its lawsuit against Binance, classifying additional crypto tokens as securities. Despite mounting pressure, the market has seen a surprising boost, with token prices increasing in the past day.

US SEC Tightens Grip on Crypto

The Binance lawsuit now includes more tokens classified as securities by the US Securities and Exchange Commission (SEC).

Crypto assets such as Axie Infinity (AXS), Filecoin (FIL), Decentraland (MANA), and others are available, among others. Using investor protection as an excuse, the Commission keeps cracking down on the cryptocurrency sector with regulations.

Broadened List of Securities in Binance Case

As part of its case against Binance, the SEC has broadened the crypto tokens it considers to be securities. Companies like AXS, ATOM, FIL, MANA, and SAND were mentioned in a recent filing by the banking authority. Binance is under investigation by the SEC for allegedly providing trading services for unregistered securities.

“If Defendants are correct, no resales of “investment contracts” could ever satisfy the Howey test, even if nothing has changed about the economic realities of these transactions. It would erase the term “investment contract” in the context of the Exchange Act, even though the Act’s focus is precisely on transactions in secondary markets—i.e., resales from investors to investors—and even though the Supreme Court has explicitly stated that the term “investment contract” is identical in both acts”

Coinbase and Other Exchanges in Legal Battle

Claims that Binance was an unlicensed broker-dealer and exchange have allegedly also been central to the lawsuit, according to Coingape. Coinbase and other cryptocurrency exchanges were the targets of lawsuits brought by the Commission as part of its crackdown on the sector.

The authority has lately amended its case against Changpeng Zhao and Binance. The position of US regulators is now the subject of fresh discussion.

Crypto Market Resilience Despite Regulatory Pressure

Cryptocurrency market mood remains strong, leading to market upticks despite the case against Binance being expanded. Nevertheless, regulatory activities have an effect on crypto values since they discourage investment in the industry.

Due to this, market players are stepping up their efforts to promote innovation through more transparent laws.