67 Altcoins Were Considered Securities by the SEC
In Brief
The US Securities and Exchange Commission has classed 67 coins as securities following the lawsuits against Binance and Coinbase.
In a significant move, the U.S. Securities and Exchange Commission (SEC) has identified 67 cryptocurrencies, valued at $100 billion collectively, as securities. Recent lawsuits lodged against leading exchanges, Binance and Coinbase, sparked the regulatory shift.
The SEC unveiled charges against Binance and its founder, Changpeng Zhao, on June 5. The agency alleged that the company had reaped billions in U.S. dollars through unregistered securities services and token sales, exposing investors to substantial risk. The following day, the SEC filed a similar lawsuit against Coinbase, accusing the company of operating as an unregistered broker.
In the Binance lawsuit, the SEC classified ten cryptocurrencies as securities. They named thirteen more as securities in the Coinbase filing. Added to previous cases involving Bittrex and Ripple, the security label now extends to over $100 billion worth of crypto assets, accounting for roughly 10% of the $1.09 trillion total crypto market capitalization.
SEC vs Altcoins
The complete list of tokens the SEC identified as securities on Binance includes $ATOM, BNB, BUSD, and COTI. For Coinbase, the listed securities are CHZ, NEAR, FLOW, ICP, VGX, DASH, and NEXO. Cryptocurrencies identified as securities on both exchanges are SOL, ADA, MATIC, FIL, SAND, MANA, ALGO, and AXS.
Reacting to the SEC’s move, Binance US has suspended U.S. dollar deposits while also announcing that fiat withdrawals will be put on hold from June 13. The company explained that this measure is to facilitate a transition to a crypto-only exchange, and assured users that trading, staking, deposits, and withdrawals in crypto will remain unaffected.
Despite the regulatory pressure, Coinbase continues to support the listed securities tokens. Coinbase CEO Brian Armstrong confirmed in a June 7 interview that the exchange does not plan to delist any of the assets in question. He emphasized that Coinbase will continue its operations as normal until a final court determination is reached.
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About The Author
Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
