The Largest Cryptocurrencies in the SEC's Crosshairs
Date: 2024-07-26 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Cryptocurrencies initially emerged as a more transparent, faster, and decentralized alternative to traditional financial systems. However, despite the fundamental differences between these systems, the world's largest regulator, the US Securities and Exchange Commission (SEC), sees much in common with traditional financial instruments.
Defining Cryptocurrencies as Securities
According to the SEC, a number of cryptocurrencies can be classified as securities. This means that they must be subject to the standards set by the Securities Act of 1933. To determine such cryptocurrencies, the SEC uses the Howey test, which states that any investment contract that involves profiting from the efforts of others must be considered a security.
As a result of many years of litigation, the SEC formed a separate category of cryptocurrencies that were recognized as securities. As of July 2024, this category includes 62 cryptocurrencies with a total capitalization of $247.35 billion.
Leaders among cryptocurrencies under SEC supervision
Binance Coin (BNB) is the leader among cryptocurrencies classified by the SEC as securities, with a capitalization of $91.65 billion. This native coin of the largest crypto exchange is actively traded on other platforms with a daily volume of $543.6 million. The SEC classified BNB as a security in 2023 in a lawsuit against Binance. This list also included 9 other cryptocurrencies, and 15 charges were brought against the exchange, 2 of which were dismissed by the court.
Solana (SOL)
The second place by capitalization among cryptocurrencies under SEC supervision is Solana (SOL). In July 2024, SOL's market cap was $80.46 billion, with a trading volume of $2.27 billion. The SEC has repeatedly recognized SOL as a security, including lawsuits against Binance and Coinbase. However, there have been no lawsuits involving Solana Labs or related companies so far.
Toncoin (TON)
Third place in the list of the largest tokens under SEC supervision is occupied by Toncoin (TON), with a capitalization of $17.99 billion and trading activity of $181.67 million. The SEC included Toncoin's predecessor, the Gram cryptocurrency, within its competence, the developers of which were forced to close the project. The TON blockchain, based on Gram technologies, also came under the regulator's supervision.
The top 5 coins by capitalization from the SEC list also include:
- Cardano (ADA) with a capitalization of $15.31 billion.
- TRON (TRX) with a capitalization of $11.72 billion.
The SEC's regulation of cryptocurrencies has a significant impact on the market, as many of them are now considered securities. This causes changes in their legal status and requires compliance with strict regulatory requirements established back in 1933. As a result, the cryptocurrency market continues to adapt to new challenges and requirements from regulators.
