SEC v. Binance Puts Screws on U.S. Exchanges to Delist ADA, SOL, MATIC

The number and popularity of tokens fingered by the SEC as unregistered securities puts significant pressure on U.S.-based exchanges.

Gery Gensler holding a gun towards the camera, looking like he is about to finish crypto.
Created by Gabor Kovacs from DailyCoin
  • The U.S. SEC continues to go after crypto businesses.
  • In the most recent case against Binance, the agency has labeled several popular crypto assets as securities.
  • The asset classification puts significant pressure on U.S.-based exchanges.

In 2023, United States financial regulators ramped up crypto enforcement efforts. The U.S. Securities and Exchange Commission has taken no prisoners, launching enforcement actions against Gemini, Genesis, Kraken, Beaxy, Bittrex, and most recently, Binance, all in the first half of the year.

The Binance case stands out for multiple reasons. Aside from scathing allegations of mishandling customer funds and wash trading, the number and popularity of tokens fingered by the SEC as unregistered securities have also given investors pause for thought.


U.S. crypto exchanges, for one, have a lot of thinking to do about their asset listings.

In its complaint filed on Monday, June 5, the SEC listed ten crypto assets as unregistered securities. The list includes BNB (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI).

Including the two Binance-linked tokens, most of these assets are leading cryptocurrencies by market capitalization, widely supported on several U.S.-based crypto exchanges like Coinbase and Kraken. For example, Coinbase’s ADA/USD market is ADA’s second-largest market per data from CoinMarketCap.

The SEC’s decision to classify these assets as unregistered securities notably pressures these exchanges to delist them or risk facing enforcement action. It is worth noting that most U.S.-based exchanges ceased support for XRP in 2021 for the same reasons. In the wake of the SEC case against Binance, businesses will again be forced to decide whether to prioritize compliance over their trading volumes and vice versa.


Due to regulatory restrictions and uncertainty, U.S.-based crypto exchanges already struggle to compete with international peers. As reported by DailyCoin in April, U.S. crypto businesses failed to gain market share even though Binance shed about 20% of its market share in a month. As highlighted in the report, Kaiko data indicated that this volume had moved to overseas exchanges like Upbit instead.

Coinbase’s share price tanked by about 10% in response to the news of the SEC case against Binance. In March, the SEC sent Coinbase notice of its intentions to launch enforcement action over several aspects of its business.

On the Flipside

Why This Matters

The SEC’s classification of popular crypto assets as securities could make it difficult for U.S. residents to trade their favorite crypto assets.

Read this to learn about how the SEC case against Binance differs from the CFTC lawsuit:

Binance Sued: How SEC Lawsuit Differs from CFTC Case 

Learn why the Met Museum’s decision to return $550k to FTX gives a boost to creditors:

FTX to Recover $550K in Donations to the Met Museum. Will There Be More?


Is Binance regulated by the SEC?

Binance is an international crypto exchange listed as being incorporated in the Cayman Islands. It is not subject to U.S. laws nor regulated by the SEC though the regulator has asserted jurisdiction over spot crypto markets in the U.S.

Why did the SEC sue Binance?

The SEC has accused Binance of operating an unregistered securities exchange in the U.S. In addition, the regulator claims that the crypto exchange engaged in wash trading and mishandled customer funds.

What happens if the SEC delists a cryptocurrency?

Crypto exchanges delist tokens, not the SEC. However, the SEC’s classification of a crypto asset may force a crypto exchange to delist the token to avoid enforcement action. In this case, the token will no longer be supported for trading on that platform, forcing users to trade these assets elsewhere and costing the exchange revenue from trading fees.

Do you lose your money if a coin is delisted?

The value of a token may decline depending on why it is delisted from a crypto exchange. These losses, however, may be temporary as the value of an asset can continue to change with time.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.