The US Securities and Exchange Commission (SEC) claims that more than 60 cryptocurrencies are securities. So, the SEC’s decision to brand some cryptocurrencies as securities come from its multiple lawsuits against crypto firms over the years.
The SEC has sued Kraken, Binance, and Coinbase this year. The regulator expanded its list of cryptocurrencies deemed securities in its recent case against Binance. Some of the tokens include:
- Binance USD (BUSD)
- Solana (SOL)
- Cardano (ADA)
- Polygon (MATIC)
- Cosmos (ATOM)
- The Sandbox (SAND)
- Decentraland (MANA)
- Axie Infinity (AXS)
- COTI (COTI).
It’s almost difficult to know what to buy with all the prominent cryptocurrencies listed as possible securities. However, as far as the SEC’s raid is concerned, some coins are considered safe to explore because they are not regarded as securities.
We have another article that goes into detail on the SEC’s securities claim. But this article explores three of the tokens deemed safe based on current policies:
Hiro, formerly called Blockstacks, was the first company to receive approval from the SEC to sell digital tokens known as Stacks (STX). At the time, these tokens couldn’t be traded by US investors on US exchanges due to the SEC’s regulations.
However, in 2021, Blockstacks introduced Stacks Blockchain 2.0. The launch meant that US traders could trade Stacks on US exchanges since the Blockstacks network was no longer controlled by a single entity. Blockstacks later filed to stop reporting to the SEC.
Interestingly, Dubai-based crypto analyst and trader Reetika Malik believes STX is a perfect investment in these times of regulatory uncertainty. Malik reportedly remarked that “STX is also one of the rare tokens approved by the SEC. So in these uncertain times when the regulator is going after a lot of crypto companies, an SEC-approved token also sounds like a good thing for the market.”
So, there are several sentiments supporting STX above several altcoins considered securities.
Everyone knows about Polkadot’s unique role in crypto. But did you know that the SEC hasn’t named DOT as a security so far? The foundation behind Polkdot, in a Twitter thread earlier this year, argued that DOT is not a security.
The Web3 Foundation claimed that it had complied with the SEC’s policies and requirements to ensure that DOT doesn’t qualify as a security. Here’s what the foundation wrote: “The Foundation made sure the SEC’s full vision of token morphing was addressed, as well as taking steps to manage the distribution of the DOT token so that no individual holds a large percentage of the network, turning down purchases from VCs interested solely in investment purposes, and promoting the tech but not the token.”
The Web3 Foundation added that the SEC “has welcomed meetings with the Web3 Foundation, and there has been a spirit of open communication and dialogue.”
The Energy Web Token (EWT) is a decentralized open-source blockchain network seeking to assist developers in the energy sector. The project accomplishes this by creating a digital infrastructure that links grid operators, physical assets like solar panels and electric vehicles, and customers in innovative ways.
The project has real value, and there has been some buzz about it. But, considering the SEC’s charge against crypto companies, is EWT safe by the SEC’s standard?
EWT is just like DOT. The creators believe it is not a security and can’t be charged by the SEC. There are reports that the SEC and EWT have even collaborated at conferences together. Furthermore, the Energy Web team said it has taken the necessary steps to ensure its tokens are not securities.
In conclusion, it is safer to explore more of these tokens that are not considered securities until the SEC clearly provides more clarity for the industry.
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