By
Steve Muchoki
April 29th, 2024
The SEC has filed lawsuits against Coinbase and Binance, categorizing numerous cryptocurrencies, including Chiliz, Flow, Dash, and Near, as securities, further solidifying its aggressive stance on crypto regulation.
On May 6th, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, categorizing new tokens such as Chiliz, Flow, Dash, and Near as securities.
According to the SEC, the agency included Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager Token (VGX), Dash (DASH), and Nexo (NEXO) in its list of over 60 cryptocurrencies that it considers securities.
SEC Classified over 19 Tokens as Securities in Just 2 Days
On May 5th, the SEC classified 12 tokens as securities in its lawsuit against Binance and its CEO Changpeng Zhao, alleging misappropriation and mixing of client funds.
The 12 tokens mentioned by the SEC were Algorand (ALGO), Axie Infinity Shards (AXS), Cosmos (ATOM), BNB Smart Chain (BNB), Binance USD stablecoin (BUSD), Cardano (ADA), Currency of the Internet (COTI), Decentraland (MANA), Filecoin (FIL), Polygon (MATIC), Sandbox (SAND), and Solana (SOL). Additionally, it included other tokens not mentioned in the lawsuit against Binance.
Thus, the SEC has reaffirmed its aggressive stance by imposing restrictions on the most important cryptocurrencies in the ecosystem, arguing that many of these tokens should be classified as securities under US laws based on their usage by their creators.
Market Attempts to Recover from the Chaos Caused by the SEC
Despite the chaos caused by the SEC’s lawsuits against two of the largest cryptocurrency exchanges in the industry, most cryptocurrencies experienced a rapid recovery that practically eliminated Monday’s losses.
Bitcoin regained the $27,000 level after experiencing a 6.5% drop from $27,120 to a minimum of $25,340.
Ethereum, the second-largest cryptocurrency by market capitalization, returned to $1,898, the price at which it was when the SEC filed the lawsuit against Binance.
However, not all cryptocurrencies have fared as well as BTC and ETH. ADA has been one of the most affected, falling more than 10% since Monday. It is currently trading at $0.34.
MANA is another cryptocurrency that has failed to recover from the chaos caused by the SEC, dropping more than 19% since Monday. At the time of writing this note, the price of MANA appears to be heading toward retesting yesterday’s low of $0.4307.
The prices of MATIC, SOL, AXS, SAND, among others, remain with approximate losses of 10% compared to Monday. This demonstrates that not all have been able to react positively like BTC and ETH.