The US Securities and Exchange Commission failed to provide sufficient clarity for altcoins. Which altcoins will you say now? You may recall that in the past weeks, the SEC used the term securities for a number of cryptocurrencies.
What’s next for altcoins?
Crypto investors are wondering what the next step will be. Others question whether these assets can be registered as securities. It also asks if it can be traded on the Nasdaq. Researchers believe that the SEC’s classification will end the existence of several altcoin pairs. On the other hand, it is among the statements that it will cause it to be removed from the list on crypto exchanges. The SEC has labeled cryptocurrencies with a total market capitalization of $100 billion as securities. The initial impact of the SEC’s actions was a large-scale outflow of capital from altcoins and a drop in their prices.
Exchanges and social trading platforms like eToro and Robinhood have made strides. They delisted assets that the SEC labeled as securities. Market participants are speculating on what’s next for these cryptos.
A crypto trader named @javacrypto_ is questioning whether these assets can be registered as securities. Examining the content of Hinman’s emails and SEC executives’ internal messages revealed a lack of clarity in testing or analysis that helps decide whether an asset is “decentralized enough”. The publication of the documents increased confusion among experts and analysts.
Securities classification that will affect US-based crypto exchanges and traders
K33 Research senior analyst Vetle Lunde states that securities classifications will affect all US-based crypto exchanges. She also emphasizes that the end will come for various altcoins, she says. So the SEC’s move becomes expensive for both the tokens that are considered securities and the crypto exchanges that list them. Moreover, securities can only be traded by clearing houses and transfer agents and regulated exchanges with physical certificates. This increases the barriers to registration of tokens as securities. On the other hand, it creates new challenges for investors who want to access and trade them.
Also, the SEC’s classification may block DeFi ecosystem tokens, which are Ethereum alternatives such as Solana and Cardano, which support various assets on their blockchain. According to CoinGecko data, there is a decrease in the total market value of Bitcoin and altcoins group. Accordingly, it has decreased by 2.65% since June 5th.
Altcoins are suffering under selling pressure from regulatory pressure. Therefore, when we look at cryptokoin.com, the market value is likely to decrease even more.
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