Roughly 10% of the total market capitalization is allegedly under SEC's authority.
In a major development in the cryptocurrency space, the US Securities and Exchange Commission (SEC) has now classified approximately 61 cryptocurrencies as "securities."
This move follows multiple litigations pursued by the SEC over the years, extending its influence over a significant portion of the market.
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The SEC has been steadily escalating its regulatory grip on various cryptocurrencies. Recently, the regulator's lawsuit against the global cryptocurrency exchange Binance resulted in 10 additional digital currencies being tagged as securities. The list now includes Binance Coin (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI).
Notably, the SEC has previously identified Ripple's XRP, LBRY Credits (LBC), and Algorand (ALGO) as securities during legal proceedings against Bittrex in April.
In an extensive list, the SEC has listed numerous cryptocurrencies, including OmiseGo (OMG), Power Ledger (POWR), Monolith (TKN), DFX Finance (DFX), Beaxy Token (BXY), Filecoin (FIL), and several others, as securities.
Furthermore, the regulator made headlines in February when it accused Terraform Labs of fraudulent activities and classified an unprecedented 16 crypto assets as securities, including Terra Luna Classic (LUNC), Terra Classic USD (USTC), and Mirror Protocol (MIR).
On top of that, the SEC ruled that 13 Mirror Protocol's mirrored assets (mAssets) designed to emulate the price of popular stocks like Apple and Tesla are securities.
SEC's classification of these cryptocurrencies as securities means it now has authority over an estimated $100 billion worth of the crypto market, which accounts for roughly 10% of the total market capitalization valued at $1.09 trillion.
Despite this significant reach, Gary Gensler, the SEC Chair, has expressed that every cryptocurrency other than Bitcoin (BTC) falls under the purview of the regulatory body.
The SEC's regulatory stance and its implications for the tokens are critical subjects to consider for all stakeholders involved. This recent update serves as a stark reminder of the intersection between traditional regulatory structures and the evolving world of digital assets.
