CoinGecko launches an index of cryptocurrencies that the SEC considers securities
Date: 2023-08-08 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
According to CoinGecko, the total capitalization of the cryptocurrencies that fell into the category of “implied securities” is about $85 billion.
Data aggregator CoinGecko has launched a new index that tracks the largest tokens that the US Securities and Exchange Commission (SEC) considers securities. The selection on the Top Alleged Securities Coins page is sorted by market cap. The top spot on the list is BNB. It is followed by Cardano (ADA), Solana (SOL) and TRON (TRX).
The index was launched in the first week of August. It includes the most popular coins that the SEC has recognized as securities in past litigations. In its latest lawsuits against cryptocurrency exchanges Coinbase and Binance, the financial regulator brought the number of these tokens to 68, while there are only 24 of them on the CoinGecko list.
According to the aggregator, the total market capitalization of the listed tokens is about $84.9 billion. This is approximately 7.5% of the total cryptocurrency market capitalization of $1.21 trillion.
SEC relies on Howey test
To determine the status of tokens, the Commission uses the Howey test, developed back in 1946. It determines whether an asset qualifies as a "security" based on four key criteria:
It's about investing money
An investor invests money with the expectation of profit
In this case, we are talking about investments in a common enterprise.
The profit expected by the investor is related to the activities of others
Earlier, Commission Chairman Gary Gensler went to great lengths to clarify that the vast majority of crypto assets should be considered securities. In his opinion, everything except bitcoin (BTC) falls under this definition - and therefore under the competence of the SEC.
If Gensler manages to defend his point of view, virtually all existing tokens will be regulated by the Securities and Exchange Commission.
