The United States Securities and Exchange Commission on Thursday introduced 9 cryptocurrencies to market securities. The supply and distribution of these cryptocurrencies is the responsibility of the SEC from now on.
The federal securities regulator sued CoinBase’s former chief product officer on Thursday. According to the statement of the securities regulator, the former product manager of Coinbase leaked to his brother and friends the cryptocurrencies that the Coinbase exchange will release in the future. The SEC also made it clear that 9 marketable cryptocurrencies are classified as securities.
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Get to know 9 securities cryptocurrencies
From the past years until now, the US Securities and Exchange Commission has gone to various cryptocurrency projects and examines them from different angles. The SEC classifies some cryptocurrencies as “securities”. In the past, the US Securities and Exchange Commission used to take enforcement actions or settle accounts with the issuer to identify an asset as a security.
According to Thursday’s complaint, it is the first time that the SEC has introduced multiple digital currencies as securities at the same time. The listed tokens are: AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM. The most famous cryptocurrency that has been introduced as a “security” so far is called Ripple (XRP). After being introduced as a security, this cryptocurrency lost its third position in the list of the largest cryptocurrencies in the market and has not managed to regain it until now.
SEC officials declined to comment when asked whether Thursday’s actions were a precedent for recognizing crypto-assets as securities. The answers to questions such as how and when to implement legal measures in the field of the 9 declared cryptocurrencies are still unclear. There is a possibility that charges will be issued against the exchanges accepting 9 cryptocurrencies.
According to an SEC official, the investigation into the underlying insider trading case will continue. Caroline Pham, Commissioner of Commodity Futures Trading Commission (CFTC) in a tweet called this action “an outstanding example of law enforcement”.
Jason Gottlieb believes that digital currency exchanges such as Coinbase and any other exchange that lists at least one of these 9 cryptocurrencies have no role in the SEC’s rulemaking and decisions. In the past, Coinbase has stated that none of the digital currencies listed on the exchange are securities. Coinbase announced in a blog post on Thursday:
SEC accusations lead to distraction and failure to implement appropriate legislative measures.
The SEC’s 62-page complaint examined all 9 mentioned tokens and proved how each of these cryptocurrencies should be classified as securities under the Howey Test. Coinbase has filed a petition with the Securities and Exchange Commission asking them to establish a clear and detailed rulemaking process on how to apply the rules to crypto assets.
Jay Clayton, the former head of the SEC, delisted Bitcoin. According to Jay, the world’s first cryptographic digital currency will not be included in this category. William Hinman, the former director of financial affairs of the SEC, also excluded Ethereum from this list.
Gary Gensler, the current head of the US Securities and Exchange Commission, has expressed his doubts about William Hinman’s statements. According to Gray, Bitcoin is considered a commodity without reason and has been delisted as a security.
Currently, Bitcoin (BTC) and Ethereum (ETH) are not considered securities. The SEC classified Ripple as a security last year. This action led to a sharp drop in the price of XRP.
The Coinbase exchange announced in its blog post that US laws are not compatible with the world of digital currencies. According to Coinbase, it is necessary to have an up-to-date regulation for crypto-assets that are considered securities. This exchange further added:
We should be able to keep non-securities tokens out of the loop according to some rules. Currently, developers of crypto projects are stressed by the constant possibility of declaring their project token as a security. With the knowledge of the specified rules, these people can design their platform in such a way as to avoid such an incident.
According to the announcement of the US Securities and Exchange Commission, 9 cryptocurrencies are securities! What do you think about this? Are most crypto projects securities? Please leave your comments in the comments section duplicate share it.