Thread by @wiseadvicesumit

The SEC's recent lawsuit against #binance and #Coinbase has sent shockwaves through the Web3 community

But the Spotlight shifts to the SEC's classification of tokens as securities in the lawsuit 🪙

Here's a rundown of the top 8 tokens in the spotlight 👇

👉 The SEC says digital tokens are securities, following standards from the 1933 Securities Act & landmark court decisions.

👉 And Cryptocurrencies pass the Howey Test” criteria to determine whether a transaction qualifies as an investment contract, a type of security

What is a SECURITY? 🤔

👉 Generally, if an investment is made in a business, expecting profits through the efforts of someone else, it is considered a security.

👉 The SEC applies these criteria to crypto, highlighting that several tokens meet the definition of securities

SEC's allegations on COINBASE

👉 The SEC alleges that Coinbase combines exchange, broker, and clearing agency functions without proper registration with the Commission

👉 And Claims that unregistered crypto securities worth billions sold since 2019 by Coinbase

Here's Coinbase answer to allegations by SEC:

Here's @SenLummis's statement on SEC's lawsuit against Coinbase 👇

With the lawsuit against #binance and #Coinbase, SEC now labels 67 cryptocurrencies as securities, impacting over $100 billion worth of tokens 💰

Here are the top 8 tokens that are at the center of attention 👇

1️⃣ ALGO ( #ALGO)

The SEC now considers ALGO security due to the expectation of profit from Algorand's DeFi and traditional finance technology.

2️⃣ AXS ( #AXS)

AXS, primarily a gaming token, is viewed by the SEC as an investment, with holders anticipating profits from Sky Mavis's efforts.

3️⃣ COTI (#COTI)

Despite claiming to be "regulation-ready," @COTInetwork is under SEC scrutiny, as the commission sees COTI as an investment.

4️⃣ SAND ( #SAND )

SAND, a metaverse token, draws the SEC's attention as investors might reasonably expect profit from TSB Gaming Ltd.'s efforts.

5️⃣ SOL ( #SOL )

SOL is considered a security by the SEC as holders may expect to profit from Solana Labs' efforts to grow the protocol.

6️⃣ MATIC ( #MATIC )

As a key component of the web3 ecosystem, MATIC is now deemed a security by the SEC, due to the profit expectations from Polygon's efforts

7️⃣ MANA ( #MANA )

While MANA is an in-game currency in Decentraland, the SEC perceives it as an investment, reflecting broader scrutiny of metaverse tokens

8️⃣ ATOM ( #ATOM)

The SEC states that ATOM holders view it as an investment, expecting profit from the growth of the Cosmos protocol based on publicly shared information.

CONCLUSION:

👉 The lawsuits seem to be a significant move toward regulating the entire crypto industry, as stated by most of the US media.

👉 But what does this mean for the crypto market? Is the SEC planning to push crypto out of the US market or promote their own CBDC?

👉 As of today 9th June, Binance.US has decided to suspend USD deposits in response to the SEC's aggressive tactics and its ideological campaign against the American digital asset industry.

This move aims to protect their customers and platform

Let's wait and see what unfolds in the ongoing #binance lawsuit, as @cz_binance has been ordered to answer the summons of the US District Court without needing to physically appear

Rest assured, we stand by Binance and Coinbase during this challenging time 🤝

Stay tuned for more news and updates on this significant development in the world of web3