Ethereum

Algorand

Foundation

The U.S. Securities and Exchange Commission has filed a lawsuit against crypto exchange <a href="https://www.cryptopolitan.com/bittrex-crypto-exchange-faces-sec-action/?swcfpc=1">Bittrex</a>, naming six tokens listed on the platform as securities. The tokens listed in the complaint are DASH, ALGO, OMG, TKN, NGC, and IHT. The agency alleges that these tokens were offered and sold as securities because investors had a &#8220;reasonable expectation of profits&#8221; from their investment, which qualifies them as securities under U.S. law.



The agency further <a href="https://www.sec.gov/news/press-release/2023-78" rel="nofollow noopener" target="_blank">claims</a> that Bittrex and its former CEO, William Shihara, coordinated with token issuers to remove &#8220;problematic statements&#8221; from public channels in an attempt to avoid regulatory scrutiny. The agency also accuses Bittrex of operating as an unregistered exchange, broker, and clearing agency, and charges its international affiliate, Bittrex Global GmbH, as well.



Notably, DASH and ALGO are singled out in the complaint for their specific features. The commission alleges that DASH incentivizes participation through its Masternode system, where users can stake DASH to validate transactions and receive a share of net revenue. According to the commission, this feature makes DASH a security because it affects the value of the token, potentially setting a precedent for other blockchain ecosystems that use similar feedback loops for network improvement, including Ethereum under the proof of stake.



<h2 id="sec-takes-issue-with-the-algorand-foundation">SEC takes issue with the Algorand Foundation</h2>



Similarly, the <a href="https://www.cryptopolitan.com/sec-gensler-faces-dismissal-as-davidson-takes-action/?swcfpc=1">SEC</a> takes issue with the Algorand Foundation, a non-profit foundation that received a portion of the ALGO token supply to distribute throughout the ecosystem over time. The commission argues that investors benefit from the efforts of the foundation, which could also raise concerns for other blockchain ecosystems that rely on foundations to steward their development.



This lawsuit and the commission&#8217;s allegations raise questions about the regulatory treatment of tokens and blockchain ecosystems in the future. Some argue that the commission&#8217;s definition of securities may be too broad, as it includes tokens that were not initially offered through ICOs or investment contracts. Others express concerns about potential overreach by regulators and the impact on the development of blockchain technology.



It remains to be seen how this lawsuit will unfold and what implications it may have for the broader crypto industry. As the regulatory landscape continues to evolve, it is important for market participants to stay informed and compliant with applicable laws and regulations.

SEC declares six tokens as securities in Bittrex lawsuit

목차

Cryptopolitan_News

2023년 4월 17일에 게재된 다른 기사

Over 1M Ethereum (ETH) Worth $2.1B Withdrawn Post Shapella Upgrade

How To Build a Better Crypto Portfolio (With Examples!)

Is Bitcoin Preparing for a New Rise? Current BTC Commentary and Analysis!

Sweat Economy Proposes New Governance Proposal to Transform the Future of Web3

DCG's Luno Exits Singapore, Withdraws License Application

HyperproAI - A Project Changing Blockchain with AI and Multiple Features

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!