Tuesday, September 26, 2023

Cryptocurrencies cited by SEC lawsuit are losing ground

  • 12 cryptocurrencies were mentioned in the SEC lawsuit.
  • These cryptocurrencies were considered securities and the SEC required a license to work with them.

Most of the 12 cryptocurrencies involved are in the red following lawsuits filed by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase. It is the only stablecoin to be “saved” from collapse.

As reported by CriptoNoticias, the SEC reported that cryptocurrencies BNB, Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND) , Decentraland (MANA), Algorand (ALGO), axie infinity (AXS) and coti (COTI) are considered securities. For this reason, working with them requires special licenses, which both Binance and Coinbase did not comply with.

11 out of 12 cryptocurrencies are on the list of weekly losers, ALGO is the third loser, down 15% and trading around $0.124 according to CoinGecko. ranks 8th BNB, down by 13% and with a price of USD 264, MATIC is at the ninth position with a loss of close to 13% and the current price is USD 0.776. The average decline of the 11 cryptocurrencies on the losers list is 10%.

The only one among these cryptocurrencies and tokens that is not losing is BUSD, as it is a stablecoin. That is, it is a digital asset whose value mimics that of the US dollar.

With the SEC announcing a lawsuit against Binance on Monday, June 5, the price of bitcoin experienced a significant drop from $27,000 to $25,500. Interestingly, this level reached $27,000 again on Tuesday after the lawsuit against Coinbase was revealed.

cryptocurrencies as securities

The reason for the demand is based on the perception of the above cryptocurrencies as securities. These are financial instruments that represent property titles or investments in a company. A common example of securities is stock., In the case of cryptocurrencies, assets that provide future profitability or voting power (eg governance tokens) can be considered securities.

The difference between treating cryptocurrency as a security or not is that these instruments are heavily regulated, so dealing with them without the relevant license is punishable.

The impact of regulators on the cryptocurrency industry

With the fall in the prices of these cryptocurrencies following the SEC lawsuits, the impact of regulatory bodies on the ecosystem is on display. was an example of Coinbase shares plunged 25% after the lawsuit was announced,

With the legal action against Binance, the price of bitcoin dropped significantly, followed by all other cryptocurrencies. However, despite the fact that the price of bitcoin recovered its value, the cryptocurrencies and tokens mentioned in the lawsuit were not. Perhaps due to the suspicion that the SEC (or any other regulatory body) may issue sanctions against the entities issuing these crypto assets, which would further affect their price.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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