AXS, FIL, ATOM now securities

The United States Securities and Exchange Commission has expanded its lawsuit against crypto exchange Binance to expand the scope of the claims.

The SEC's updated legal filings now list additional tokens as collateral, including Axie Infinity's Axie Infinity Shards (AXS), Filecoin (FIL), Cosmos' ATOM (ATOM), The Sandbox's Sand (SAND) and Decentraland's MANA (MANA).

The development follows the SEC's ongoing efforts to regulate the crypto industry and classify digital assets as securities.

Related: US diplomats push Nigeria to release detained Binance exec

Proliferation of charges.

In this recent SEC v. In the Binance lawsuit, the regulator accused Binance and its US partner BAM Trading of facilitating the trading of tokens that are now considered unregistered securities.

The SEC said that Binance platforms actively promote these tokens, newly minted securities, to their customers and highlight their potential return on investment.

“Binance and BAM Trading will fill these markets with republishing information and promoting issuer and bullish statements and activity.” [tokens] as an investment”

Related: Kazakhstan Mules Binance, Bybit for Digital Asset Trading

Unregistered claims

The SEC's amendment to the complaint also reiterates its position that Binance was operating illegally as an unregistered exchange, broker-dealer and clearing agency.

At all relevant times, the regulator said, Binance “used interstate trading methods and instruments to execute transactions in securities for other accounts.”

In its claims, the SEC also alleged that Binance failed to make appropriate disclosures regarding the risk and legality of trading trademarks on global and US platforms.

RELATED: Binance Subsidiary Tokocrypto Receives Full License in Indonesia

The apparent contradictions of the SEC

Amid the ongoing lawsuit against Kraken, according to Stuart Alderotti, chief legal officer at Ripple, the SEC has come under scrutiny after admitting that “crypto asset security” is a “made-up term.”

Alderoty scoffed at the “twisted contradictions” raised in footnote 6 of Binance's amended complaint, saying the regulator “regrets the confusion it has invited.”

Paul Grewal, chief legal officer at Coinbase, highlighted the regulator's claim that “XRP itself is a security” in the 2020 Ripple et al. He sued the SEC, asking, “Why mislead the court?” he asked.

Magazine: Proposed Change Could Save Ethereum From L2's ‘Roadmap to Hell'