Solana, polygon, cardano and other tokens are securities, says SEC in Binance lawsuit

Quick Take

  • The U.S. SEC called 12 tokens securities in its lawsuit against Binance, including BNB, SOL, MATIC and ADA.
  • Notably, the regulator did not mention ETH in this list of securities.

The U.S. Securities and Exchange Commission (SEC) today explicitly called 12 tokens securities in its lawsuit against Binance, its CEO Changpeng Zhao and Binance U.S.

Those 12 tokens are BNB (BNB), Binance USD stablecoin (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS,) and Coti (COTI). 

"Since the Binance Platforms launched, Defendants have made available for trading on them crypto assets that are offered and sold as investment contracts, and thus as securities," the SEC said in the lawsuit regarding these 12 tokens, adding that the list is not exhaustive. 

Notably, the SEC did not name ether (ETH) as a security in the lawsuit. In April, SEC Chair Gary Gensler refused to say whether ETH, the second-largest cryptocurrency by market cap, was a security during a nearly five-hour hearing. Earlier this year, Gensler told New York Magazine that "everything other than bitcoin" is a security.


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The SEC alleged in the lawsuit that Binance and affiliated companies repeatedly lied to customers and misdirected funds to a separate investment fund owned by Zhao, in an echo of similar accusations against Binance's former rival FTX and its founder Sam Bankman-Fried. The SEC enforcement action follows a similar suit filed in March by the Commodity Futures Trading Commission against Binance.

The price of bitcoin, BNB and other tokens have declined since the news of the lawsuit broke. 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.