Binance Lawsuit: SEC’s Recent Action Identifies Over 60 Cryptocurrencies as Securities, Impacting $100 Billion in Token Value
Following the inclusion of additional cryptocurrencies in its lawsuit against Binance, the United States Securities and Exchange Commission (SEC) has expanded the total number of cryptocurrencies designated as securities to approximately 61. Over the years, the SEC has engaged in numerous litigations, establishing its classification of certain cryptocurrencies as securities. This recent development highlights the regulator’s ongoing efforts to outline its stance on the subject, impacting the landscape of the crypto market.
In the latest lawsuit targeting Binance, the Securities and Exchange Commission (SEC) has added 10 cryptocurrencies to its securities classification. The newly included cryptocurrencies are as follows: BNB (with tickers down $276), Binance USD (BUSD, with tickers down $1.00), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI). By incorporating these digital assets into the securities category, the SEC further expands its regulatory scope, signaling the ongoing efforts to establish clarity and oversight within the crypto market.
Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and their founder, Changpeng Zhao, with a variety of securities law violations.https://t.co/H1wgGgR5ir pic.twitter.com/IWTb7Et86H
— U.S. Securities and Exchange Commission (@SECGov) June 5, 2023
Among the notable cryptocurrencies that the SEC has classified as securities, Ripple’s XRP stands out, with XRP tickers down $0.50. Additionally, LBRY Credits (LBC), developed by LBRY, has also been deemed a security, although this classification does not extend to secondary sales. Another cryptocurrency, Algorand (ALGO), was named alongside five others when the SEC charged Bittrex in April. These designations highlight the SEC’s ongoing efforts to address the regulatory status of various cryptocurrencies, aiming to provide clarity and oversight within the evolving crypto landscape.
Also Read This Related: Binance CEO CZ Issues First Response to SEC Litigation
In a significant enforcement action in February, the SEC charged Terraform Labs with fraud, leading to the largest grouping of cryptocurrencies classified as securities by the regulator. A total of 16 crypto assets were included in this classification, encompassing Terra Luna Classic (LUNC), Terra Classic USD (USTC), Mirror Protocol (MIR), and approximately 13 Mirrored Assets (mAssets). The Mirrored Assets aimed to replicate the price movements of prominent stocks like Apple and Tesla. This enforcement action underscores the SEC’s commitment to addressing fraudulent practices and establishing regulatory clarity within the cryptocurrency space.
With its extensive litigation efforts in the crypto space, the SEC’s regulatory purview now extends to over $100 billion in market value, representing approximately 10% of the total cryptocurrency market capitalization of $1.09 trillion. This demonstrates the substantial reach of the SEC’s oversight and its increasing influence within the evolving crypto market. The regulator’s actions reflect a concerted effort to address potential securities violations and ensure investor protection in this rapidly expanding industry.
According to SEC Chair Gary Gensler, he asserts that “everything other than Bitcoin” is categorized as a security, falling within the agency’s jurisdiction. This statement assumes significance considering the vast number of cryptocurrencies in existence. As per data from CoinMarketCap, there are approximately 25,500 listed cryptocurrencies. Gensler’s stance highlights the broad scope of the SEC’s regulatory authority, encompassing a wide range of digital assets beyond Bitcoin. This position underscores the ongoing efforts to establish regulatory clarity and investor protection within the expansive landscape of cryptocurrencies.
SEC Designates Numerous Cryptocurrencies as Securities
XRP$0.51, Telegram’s Gram (TON), LBRY Credits (LBC), OmiseGo (OMG), DASH (DASH), Algorand (ALGO), Naga (NGC), Monolith (TKN), IHT Real Estate (IHT), Power Ledger (POWR), Kromatica (KROM), DFX Finance (DFX), Amp (AMP), Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), XYO Network (XYO), Liechtenstein Cryptoasset Exchange (LCX), Kin (KIN) Salt Lending (SALT), Beaxy Token (BXY), DragonChain (DRGN), Tron (TRX), BitTorrent (BTT), Terra USD (UST), Luna (LUNA), Mirror Protocol (MIR), Mango (MNGO), Ducat (DUCAT), Locke (LOCKE), EthereumMax (EMAX), Hydro (HYDRO), BitConnect (BCC), Meta 1 Coin (META1), Filecoin (FIL), BNB (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), COTI (COTI), Paragon (PRG), AirToken (AIR).
Mirror Protocol mAssets: Mirrored Apple Inc. (mAAPL), Mirrored Amazon.com, Inc. (mAMZN), Mirrored Alibaba Group Holding Limited (mBABA), Mirrored Alphabet Inc. (mGOOGL), Mirrored Microsoft Corporation (mMSFT), Mirrored Netflix, Inc. (mNFLX), Mirrored Tesla, Inc. (mTSLA), Mirrored Twitter Inc. (mTWTR), Mirrored iShares Gold Trust (mIAU), Mirrored Invesco QQQ Trust (mQQQ), Mirrored iShares Silver Trust (mSLV), Mirrored United States Oil Fund, LP (mUSO), Mirrored ProShares VIX Short-Term Futures ETF (mVIXY).
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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