SEC’s regulatory network covers $115 billion in crypto

SEC's regulatory network covers $115 billion in crypto

While the pressure of the regulatory institutions is making the investors nervous, the coins are making a loss. Securities and Exchange Commission (SEC) digital securities recognized as unregistered securities by tokenlist of, USA agency Binance Holdings Ltd. It covers over $115 billion in crypto after the lawsuit filed against him.

The regulator, who filed the complaint on Monday, had a dozen coins‘ as entities that fall under its jurisdiction. Such a definition, accompanied by strict investor protection rules, can make it difficult to trade tokens if exchanges hesitate to list them for fear of the SEC.

Binancewith a market value of $44 billion BNB‘si, stablecoin‘I BUSD, Cardanoof ISLAND‘si, witherof LEFTu, polygon‘Fame MATIC‘I, Filecoin‘of ELEPHANTi and Algorand’of ALGO’water was among those named in the lawsuit. also targeted by the SEC XRP The agency currently categorizes over $115 billion in coins specifically as unregistered securities.

SEC Chairman Gary Genslerhas long said that most tokens are subject to the institution’s investor protection laws and trading platforms must register with the regulator. However, tagging specific tokens represents a more drastic approach. USAauthorities in 2022 that a slump and FTX It has been putting pressure on digital assets this year after a series of booms, including the bankruptcy of its stock market.

Risk of delisting of SEC and coins

digital asset specialist Arcachief investment officer of Jeff Dormansays:

The main ones that will suffer are Coinbase, Kraken and other US-based exchanges that will have to decide whether to delist later on, and US market makers who will potentially have to stop trading on some of the tokens listed as securities.

Dorman also predicted that the lawsuit will not have a long-term impact on token prices because the tokens are still traded on offshore exchanges.

Filecoin fell about 10 percent after the SEC’s complaint, while BNB tumbled about 9 percent. Other assets mentioned are also experiencing losses. In the broader digital asset markets, both Bitcoin and an indicator of the top 100 coins have dropped nearly 6 percent.

coinbase And Krakendid not immediately respond to a question about the consequences of the SEC action. Coinbase has previously said that it may not delist tokens that the SEC considers securities until a final court decision.

Bitcoin and Ethereum

Gensler, the greatest cryptocurrency with a unit bitcoinIt said it was not covered by the agency’s securities rules. However, the second largest digital token Ethereum less clear about it.

CoinGeckoThe overall crypto market cap stands at around $1.1 trillion, compared to a peak of more than $3 trillion during the pandemic-era boom. The SEC, Binance, and the Chief Executive Officer in the lawsuit filed Monday Changpeng Zhaoof misusing client funds, misleading investors and regulators, and violating securities rules. Binance said:

While we take the SEC’s allegations seriously, they should not be the subject of an SEC enforcement action, let alone an emergency. We intend to defend our platform vigorously.

One of the SEC’s most important lawsuits is a 2020 lawsuit filed against Ripple Labs. The complaint alleges that the company failed to register XRP as a security. Brad Garlinghouse, Ripple’s Chief Executive Officer, said in a statement at the end of May that he expects a court decision within weeks. The result could have significant implications for US crypto rules.

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