SEC Lawsuit Targets $115B Worth of Tokens
The SEC's lawsuit against Binance extends its list of unregistered securities to cover approximately $115 billion worth of tokens, causing market turmoil and impacting the value of major cryptocurrencies.
The U.S. Securities and Exchange Commission (SEC) has expanded its list of unregistered securities to include approximately $115 billion worth of tokens following its recent lawsuit against cryptocurrency exchange Binance. The SEC's Monday complaint targeted tokens traded on Binance, including Binance's BNB token, stablecoin BUSD, Solana, Cardano's ADA, and Polygon's MATIC, deeming them securities that require registration and regulation.
By including these tokens, the SEC's classification of securities now covers a total of $115 billion in cryptocurrencies, when considering previously targeted tokens as well. The charges against Binance included allegations of unregistered and unlawful offers and sales of BNB and BUSD tokens. The SEC also claimed that Binance failed to register Binance as an exchange or broker-dealer clearing agency.
In response, a spokesperson from Binance emphasized that BNB is not a security but a native token designed to create an internal economy, with its value derived from its participants.
The lawsuit had a significant impacton the crypto market, causing Bitcoin to drop by 4% over the past 24 hours, reaching $25,780, according to CoinMarketCap. Ether also experienced a decline of 3.15%, while BNB lost 8.05%, trading at $276.99.
Traders and investors were caught off guard by the lawsuit, which has sent shockwaves throughout the crypto industry. The SEC's extended list of tokens classified as securities has raised concerns and uncertainty among market participants. The ongoing legal proceedings will undoubtedly shape the regulatory landscape and potentially influence the future of cryptocurrencies.
