The U.S. Securities and Exchange Commission (SEC) has included additional tokens in its securities classification in the Binance lawsuit. The crypto assets include Axie Infinity (AXS), Filecoin (FIL), Decentraland (MANA), and others. The Commission continues its regulatory assault on the crypto market, citing investor protection.
SEC to Treat More Tokens as Securities
The SEC expanded the list of crypto tokens it considers securities in its recent Binance lawsuit. FilingThe SEC said the unregistered securities exchanges targeted by the financial regulator included AXS, ATOM, FIL, MANA and SAND, and that Binance offered trading services for these unregistered securities in violation of the SEC's rules.
“If defendants' arguments are correct, the resale of 'investment contracts' does not satisfy the Howey test, even if the economic substance of these transactions remains unchanged. This decision erases the term 'investment contract' from the context of the Securities Act. Although the Securities Act focuses precisely on secondary market transactions, i.e., investor-to-investor resales, the Supreme Court has expressly stated that the term 'investment contract' is the same under both statutes.”
The lawsuit also centers on allegations that Binance was operating illegally as an unregistered exchange and broker-dealer. The Commission has stepped up its regulatory oversight of the industry, and has also filed lawsuits against Coinbase and other cryptocurrency exchanges. Regulators file amendments The complaint against Binance and its founder, Changpeng Zhao, has sparked renewed debate about the position of US regulators.
Potential impact on tokens
As the lawsuit against Binance escalates, the crypto market is trending higher as sentiment remains positive. However, crypto prices have been affected by regulatory measures slowing investment in the sector. As a result, market stakeholders are increasingly calling for clearer regulations to encourage innovation.
The cryptocurrencies listed in the SEC lawsuit rose today. In the past 24 hours, AXS Price It rose 2.6% to trade at $4.81, while FIL traded at $3.73, up 2.2% in the past 24 hours. Crypto bulls are also signaling improved momentum against an expected interest rate cut in the United States.
David Pokima
David is a financial news contributor with 4 years of experience in the blockchain technology and cryptocurrency space. He is interested in learning about emerging technologies and has an eye on the latest news. He keeps abreast of trends and reports on a variety of areas including regulation, partnerships, crypto assets, stocks, and NFTs. Outside of the financial markets, David enjoys cycling and horse riding.
Disclaimer: The presented content may contain the personal opinions of the author and are subject to market conditions. Please conduct market research before investing in cryptocurrencies. The author or publication is not responsible for any personal financial losses.
✓ Share: