The Securities and Exchange Commission (SEC) has classified 9 altcoin projects listed on Coinbase as securities.
SEC decides titles for 9 altcoins
The SEC has announced that 9 altcoin projects named in a Coinbase-related investigation have secured status. Associated cryptocurrencies:
- Amp (AMP)
- DerivedDAO (DDX)
- XYO Network (XYO)
- Rari Governance (RGT)
- LCX (LCX)
- Power Ledger (POWR)
- DFX Financing (DFX)
- Chromatic (CHROME)
Incidentally, the petition in which the above cryptocurrencies appear in the securities statute stems from a lawsuit filed against former Coinbase employees accused of insider trading. The SEC said in its complaint regarding this claim:
Our message regarding these allegations is clear: fraud is fraud, whether it happens on Blockchain or on Wall Street, it is fraud.
This development is one of many instances where the SEC has designated certain cryptocurrencies as securities. According to the complaint filed today, the SEC adheres to its position that most cryptocurrencies are securities. According to Gurbir Grewal, Director of the SEC’s Enforcement Division:
We are not concerned with the 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 exchanged information before the cryptocurrencies were listed on Coinbase. These securities, we will continue to provide equal conditions to investors.
Coinbase then published a blog post in response to the SEC filing. He said America’s laws today need to be updated because they cannot keep up with the digital age. “The cryptocurrency market is waiting for the open. Excerpt from the article titled “But first, we need enforceable rules”:
Cryptocurrencies as securities need an updated rulebook to guide safe and effective practices. Non-securities cryptocurrencies need certainty to stay outside of these rules. Everything else will consolidate established technologies at the expense of innovation.
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