SEC Crackdown: What Crypto Tokens are Securities?

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SEC Crackdown: What Crypto Tokens are Securities?

The US Securities and Exchange Commission (SEC) has expanded its lawsuit against Coinbase, adding more cryptocurrency tokens to its list of securities, some of which were not mentioned in its previous lawsuit against Binance or Bittrex.  As a result, several named tokens experienced significant drops in value. The market reaction also affected unrelated tokens, suggesting a wider market panic. We’ll take a look at what cryptocurrency tokens are securities in the eyes of the SEC.

Tokens Named as Securities

We’ll take a look at the current list of tokens that are considered securities by the US Securities and Exchange Commission – SEC;

  • Ripple (XRP)
  • Filecoin (FIL)
  • Binance Coin (BNB)
  • Binance USD (BUSD)
  • Solana (SOL)
  • Cardano (ADA)
  • Polygon (MATIC)
  • Cosmos (ATOM)
  • Tron (TRX)
  • BitTorrent (BTT)
  • Terra USD (UST)
  • Luna (LUNA)
  • The Sandbox (SAND)
  • Decentraland (MANA)
  • Axie Infinity (AXS)
  • OTG’s Gram (TON)
  • LBRY Credits (LBC)
  • Paragon (PRG)
  • AirToken (AIR)
  • LBRY Credits (LBC)
  • OmiseGo (OMG)
  • Algorand (ALGO)
  • Power Ledger (POWR)
  • Amp (AMP)
  • Rally (RLY)
  • Rari Governance Token (RGT)
  • XYO Network (XYO)
  • Kin (KIN)
  • Salt Lending (SALT)
  • DragonChain (DRGN)
  • Mirror Protocol (MIR)
  • Ducat (DUCAT)
  • Locke (LOCKE)
  • EthereumMax (EMAX)
  • Hydro (HYDRO)
  • BitConnect (BCC)
  • Meta 1 Coin (META1)

SEC’s Position

The SEC maintains that many well-known cryptocurrency assets, not just recent ICO tokens, meet the definition of a security under U.S. law. It is taking an aggressive posture in enforcing this view through legal action. The naming of additional tokens in the Coinbase lawsuit indicates the SEC continues to scrutinize the crypto sector and may view other popular coins as securities as well. This creates regulatory uncertainty for the industry.

Sec Tokens Named Securities

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