The Securities and Exchange Commission (SEC) has classified 9 altcoin projects listed on Coinbase as securities.
SEC decides on securities for 9 altcoins
The SEC has announced that 9 altcoin projects named in an investigation related to Coinbase have security status. Related cryptocurrencies:
- Amp (AMP)
- Rally
- DerivaDAO (DDX)
- XYO Network (XYO)
- Rari Governance (RGT)
- LCX (LCX)
- Power Ledger (POWR)
- DFX Finance (DFX)
- Chromatica (CHROM)
By the way, the petition in which the above cryptocurrencies appear in securities status is from a lawsuit filed against former employees at Coinbase accused of insider trading. The SEC said in its complaint about this claim:
Our message regarding these allegations is clear: fraud is fraud, whether it happens on Blockchain or Wall Street, it is fraud.
This development is one of several instances where the SEC has designated certain cryptocurrencies as securities. According to the complaint filed today, the SEC adheres to its stance that most cryptocurrencies are securities. According to Gurbir Grewal, director of the SEC’s Enforcement Division:
We are not concerned with labels, but rather with the economic realities of a proposal. In this case, the facts confirm that some of the cryptocurrencies in question are securities and that the defendants allegedly traded on information before the cryptocurrencies were listed on Coinbase. These securities, we will continue to provide equal conditions to investors.
Coinbase is responding
Coinbase later published a blog post in response to the SEC filing. He stated that US laws today need to be updated as they cannot keep up with the digital age. “Crypto Securities Market Awaits Opening. Excerpt from the post titled “But First We Need Applicable Rules”:
Cryptocurrencies as securities need an updated rulebook to guide safe and efficient practices. Non-secure cryptocurrencies need the certainty of staying outside these rules. Anything else will have the effect of consolidating established technologies at the expense of innovation.
Coinbase has also asked it to create regulations for what it calls “digital asset securities” in a petition. Specifically, according to Coinbase, it will be necessary to scrutinize how cryptocurrency differs from traditional financial assets, and what measures will actually protect investors who trade cryptocurrencies in order to develop such complete guidelines.
The exchange also said that the US would benefit if the SEC encourages the use of cryptocurrencies while enforcing regulations:
If they don’t, others will and the US may not be able to catch up.
As you follow on Kriptokoin.com, SEC Chairman Gary Gensler had stablecoins on his agenda.
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