SEC Includes ALGO, MATIC, SOL, In Securities Category

The SEC mentions several crypto assets that fall into the securities category. (Photo; Doc. Bitcoin Exchange Guide)

JAKARTA - The United States Securities and Exchange Commission (SEC) sued the leading US crypto exchange Kraken on Monday, November 20, 2023. In the lawsuit, the SEC said 16 crypto tokens traded on the platform were considered securities.

In an official announcement, regulators stated that this step was based on previous enforcement measures involving crypto assets, including tokens such as ADA, AXS, ALGO, and others.

Some of the crypto assets mentioned in this SEC lawsuit have previously become a topic of conversation in legal cases involving well-known crypto exchanges such as Coinbase, Binance, and Bittrex. SEC chairman Gary Gensler assesses nearly all crypto tokens fall into the securities category except Bitcoin.

The lawsuit against Coinbase in June also indicated that some crypto assets, such as ICP, AXS, CHZ, FIL, and others, met the criteria as investment contracts. In the same month, in the Binance case, securities regulators stated that 12 crypto tokens, including BNB, BUSD, and SOL, were considered securities.

Then, the lawsuit against Bittrex in April also ruled that DASH, ALGO, TKN, NGC, and OMG were considered unregistered securities. Responding to the demands of the SEC, Kraken CEO Dave

This is in line with the establishment of Coinbase which also confirms that its platform does not include crypto securities. Cynthia Lummis, a US Senator from Wyoming, responded to SEC's move by urging Congress to formulate a regulatory framework that provides SEC clarity on the definition of securities and commodities.

Lummis highlighted that crypto asset companies have repeatedly sought guidance from the SEC but are instead faced with law enforcement actions that cause unnecessary harm to consumers.