SEC Identifies 67 Altcoins as Securities, Valued at $100 Billion
In the wake of lawsuits targeting Binance and Coinbase, the US Securities and Exchange Commission (SEC) has classified 67 coins as securities. On June 5, the SEC lodged 13 charges against Binance and its founder, Changpeng Zhao, accusing them of engaging in unregistered securities offerings and token sales, which allegedly resulted in substantial personal gains at the expense of investors’ exposure to risk.
Following this, the SEC filed a lawsuit against Coinbase the following day, citing similar allegations of the platform operating as an unregistered broker.
The SEC’s lawsuit against Binance revealed that ten cryptocurrencies have been classified as securities. Similarly, in the case against Coinbase, the SEC identified 13 cryptocurrencies as securities. These actions by the SEC highlight their scrutiny and determination to regulate the classification and trading of various digital assets.
With the addition of previous cases involving Bittrex and Ripple, the cumulative impact of security classifications now encompasses more than $100 billion worth of crypto assets. These identified assets account for approximately 10% of the total crypto market capitalization, which amounts to $1.09 trillion. The widening scope of these security labels signifies a growing regulatory focus on ensuring compliance and investor protection within the cryptocurrency industry.
67 coins have been listed as securities by US SEC, with a total market value of over $100 billion
According to statistics, after launching lawsuits against #Binance and #Coinbase, the total number of cryptocurrencies marked as securities by US SEC has now reached 67.
— Gwei Research (@btcinchina) June 12, 2023
The SEC has designated several tokens as securities in its filings against Binance and Coinbase. The tokens classified as securities on Binance include $ATOM, BNB, BUSD, and COTI. On Coinbase, the tokens identified as securities are CHZ, NEAR, FLOW, ICP, VGX, DASH, and NEXO. Additionally, the tokens SOL, ADA, MATIC, FIL, SAND, MANA, ALGO, and AXS have been labeled as securities by both Binance and Coinbase. These listings provide insight into the specific tokens that the SEC considers falling within the securities classification in relation to these exchanges.
In response to the lawsuit, BinanceUS has temporarily halted US dollar deposits and clarified that fiat withdrawals will be temporarily paused starting from June 13. This measure is taken as a precautionary step to address the legal proceedings and ensure compliance with regulatory requirements. The suspension of these services aims to provide clarity and maintain transparency during the ongoing situation.
Also Read: Altcoins Plunge Over 20% as Binance CEO Receives US Court Summons
BinanceUS has stated that necessary measures have been implemented to facilitate a seamless transition to a crypto-only exchange. The exchange reassured users that trading activities, as well as staking, deposits, and withdrawals involving cryptocurrencies, continue to be fully operational. While the suspension of fiat-related services may be temporary, BinanceUS remains committed to ensuring uninterrupted access to crypto trading and related functionalities for its users.
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
Despite the regulatory battle, Coinbase remains steadfast in its support for the securities tokens, demonstrating its commitment to maintaining services for these assets.
During an interview on June 7, Coinbase CEO Brian Armstrong explicitly stated that the exchange has no intentions of delisting any of the mentioned assets. Armstrong emphasized that Coinbase will continue to operate normally until a court ruling is issued, indicating a commitment to maintaining existing operations despite the ongoing legal proceedings.
Also Read: Foundations Respond to SEC Lawsuit Allegations, Leading to Price Stability for SOL, ADA, MATIC
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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