If you’ve been keeping up with the crypto headlines you’ll know that the SEC has ramped its regulation of the crypto industry.
The thing is that the SEC has yet to clarify the criteria it’s using to designate a particular coin or token as a security like a stock in a company. As we’ve seen with cryptos like XRP, this can be very bad for both the crypto and the companies behind it.
Unfortunately and fortunately, the SEC recently called 9 cryptocurrencies securities in a complaint against alleged insider trading by a Coinbase employee. While this is certainly bad news for the cryptos in question (hence unfortunately), it could offer some very valuable clues as to the criteria the SEC is actually using to go after crypto projects (hence fortunately).
As it so happens, I managed to narrow down a handful of criteria the SEC is using to analyse cryptocurrencies. There is one that I forgot to mention in the video however, and that’s that all the 9 cryptocurrencies the SEC recently labeled as securities are ERC-20 tokens on Ethereum. It’s hard to say if this counts as a criteria though, because after all, the SEC went XRP and its not a token.
For what it’s worth, this is easily one of the most important videos we’ve made in recent memory, and I strongly suggest looking at the cryptos you hold through the lens of the SEC to see if any of them could be at risk of getting labeled a security and enduring all the bad stuff that comes with that classification.
Enjoy, if you can…
⛓️ 🔗 Useful Links 🔗 ⛓️
► SEC Coinbase Employee Insider Trading Full Complaint: https://www.sec.gov/litigation/compla…
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.