Criticism emerges as the SEC admits "crypto asset security" lacks a formal definition.

The United States Securities and Exchange Commission (SEC) has expanded its lawsuit against Binance. The updated legal filings now include a wider range of tokens, with Axie Infinity among those listed as securities.

In the latest update to the SEC v. Binance lawsuit, the regulator has accused Binance and its U.S. affiliate, BAM Trading, of enabling the trade of tokens now deemed unregistered securities. The SEC alleges that Binance actively promotes these newly classified securities tokens to customers, emphasizing their potential returns.

The SEC stated: "Binance and BAM Trading fill these markets with information republishing and amplifying the issuer and promoter statements and activity promoting [tokens] as an investment."

The amendment to the complaint also reiterates the SEC's stance that Binance operated illegally as an unregistered exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, broker-dealer, and clearing agency. The regulator claims that Binance used interstate commerce to conduct transactions in securities for others.

The SEC's filing further asserts that Binance failed to provide proper disclosure regarding the risks and legality of the tokens traded on its international and US platforms.

Amid its ongoing legal battle with Kraken, the SEC has faced criticism after admitting that the term "crypto asset security" is not formally defined.