Did the SEC just label these cryptos as ‘securities’ in the Kraken lawsuit?
Well, let’s try and read the tea leaves on this one.
It looks like the SEC might have just tipped us crypto enthusiasts off to some new tokens they now deem as securities.
After reading through the Kraken lawsuit, I nearly spit out my iced coffee when I noticed nine cryptos that were classified as securities.
Kraken SEC Cryptos Leak — Or just poor wording?
BREAKING: the SEC calls the following cryptos securities in it’s Kraken lawsuit:
Solana (SOL)
Cardano (ADA)
Polygon (MATIC)
Internet Computer (ICP)
Cosmos (ATOM)
Algorand (ALGO)
Sandbox (SAND)
Decentraland (MANA)
Chiliz (CHZ)โ Crypto Tea (@CryptoTea_) November 20, 2023
Of course, X is already running wild with theories about each of the above cryptos exploding on potential news that they’re now deemed securities.
So in other words these are the ones that their institutional friends are trying to stack up and they need a lower entry point…
Got it. ๐๐โ Crypto__Gamer_(510.Sats)_๐ก_(๐,๐งก) (@Crypto__Gamer) November 20, 2023
This comes at a peculiar timing with BTC ETF’s nearing. We’ve also read rumblings of the same for ETH ETFs.
Of course, the Kraken lawsuit is another thorn in crypto’s side, but ultimately these leaks could be a huge bull-run catalyst.
We’ve had to endure a long, cold crypto winter, but it looks like things are finally on the uptrend.
Would this be good for Crypto?
The U.S. Securities and Exchange Commission (SEC) has been cast in the role of the wary sheriff in a Wild West town.
While crypto enthusiasts ride high on the blockchain bronco, the SEC’s eagle eye is keenly fixed on regulatory compliance.
The SEC’s stance on crypto in general? It’s complicated.
To them, cryptocurrencies are like a box of chocolates โ you never know what you’re going to get.
Some, like Bitcoin and Ethereum, they’ve hinted are more akin to commodities. Others, they’ve firmly labeled as securities, making them subject to the same rigorous oversight as stocks and bonds.
This distinction is crucial, as treating a cryptocurrency as a security means it falls under the SEC’s purview, bringing with it a suitcase full of disclosure requirements and investor protections.
The SECโs mantra is investor protection, market integrity, and facilitating capital formation.
In their eyes, the crypto market is a bit like the Wild West โ potentially lucrative but fraught with risks.
Chairman Gary Gensler has been vocal about bringing this newfangled digital currency frontier under the traditional regulatory umbrella, emphasizing the need for investor protection in this rapidly evolving space.
So, while the crypto cowboys may want to gallop freely, the SEC is keen on reigning them in, ensuring that in the world of digital assets, the rule of law is more than just a suggestion.
