The securities debates that started in the Bitcoin and altcoin universe are not going to end. You remember, the SEC made a statement recently. Accordingly, there was an emphasis on securities related to some cryptocurrencies. Now companies are responding one by one. Let’s look at the details.
Answers for 3 altcoins
Altcoin Filecoin developer Protocol Labs stated on June 9 that Filecoin is not a security. He made the statement on Twitter. Filecoin responded to the SEC regarding the matter. He offers several reasons for this. Earlier, the SEC had said Filecoin (FIL) was a security after Grayscale applied for a Filecoin Trust investment product. A comment letter sent by the SEC states that the FIL token “meets the security definition.” Therefore, Grayscale had to withdraw its application. Recently, the SEC named several cryptocurrencies as securities in connection with the Binance and Coinbase lawsuits.
The statement by Protocol Labs came as the SEC filed suit against Binance and Coinbase for various reasons. These lawsuits will not have a special impact on the decentralized storage solution of altcoin Filecoin. But if it goes in the wrong direction, it will have far-reaching consequences for the future of the market and tokens like FIL.
Answer from Altcoin Cardano
The Cardano community validator used the numbers to refute the SEC’s claims that altcoin ADA is a security. When we look at Kriptokoin.com, the United States Securities and Exchange Commission (SEC) pressures on the duo of Coinbase and Binance exchanges and claims for top cryptocurrencies such as Cardano (ADA) received mixed reviews from all over the industry. One is whether Cardano is a securities and key protocol validator. Cardano supporters have shared key numbers that show the decentralized status of ADA, thereby invalidating the SEC’s stance that the coin is a security.
The response to the SEC’s claim is interesting. Accordingly, altcoin Cardano is more decentralized than BTC. There are a total of 3,200 pools in the Altcoin Cardano protocol. In addition, the five largest pools have shares of 8%, 4%, 3% and 2%, respectively. These low stakes mean that hundreds of actors will be required to form a coalition that could lead to a 51% attack on the protocol. By contrast, there is the fact that among Bitcoin’s biggest miners are the Foundry USA pool, which produces about 32% of the blocks, and AntPool, which produces 21%. The other three pools have 18%, 8% and 6% shares. With these numbers, it’s possible that only a few of the pool operators joined forces and launched an attack on the Bitcoin network.
Binance denies SEC’s claims
A Binance spokesperson emphasizes that BNB is a native token designed to create an internal economy. He also states that his value stems from his participants. On the subject he says:
“BNB creates user demand for BNB as a reflection of community-built projects by allowing users who want to interact with projects built on these chains (such as gaming, social, financial or other utilities) to transact with BNB. Cryptocurrencies do not represent any investment contract. Therefore, they are not securities.”
In addition, the crypto exchange finds the Commission’s classification of BUSD as a security to be incorrect. According to the firm, BUSD is a fiat-backed stablecoin that the Commodity Futures Trading Commission (CFTC), another independent US financial institution, has described in court as a “non-secure commodity.” Meanwhile, it’s not the first time the SEC has designated a crypto project as a security. In April, the Algorand Foundation rejected the Commission’s classification of the altcoin ALGO token as a security. SEC chairman Gary Gensler has argued that all digital assets except Bitcoin (BTC) are securities. He also pointed to the legal incompatibility of crypto firms.
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