The recent decision by the United States Securities and Exchange Commission (SEC) to label a number of cryptocurrencies as securities have led to historic lows for Algorand (ALGO) and Flow (FLOW) on June 10. According to CoinGecko data, both ALGO and FLOW experienced drops of around 30% in the past seven days before rebounding, with ALGO regaining over 12.5% and FLOW recovering just over 10.5% since June 10.
The SEC slapped the securities label on 16 new cryptocurrencies, including FLOW and Internet Computer, while suing crypto exchanges Binance and Coinbase. Algorand was targeted in the SEC’s case against Binance but was first singled out in its April lawsuit against Bittrex.
However, some creators of digital assets have rebuffed the SEC’s claims. Solana (SOL), Cardano (ADA), and Polygon (MATIC) have all staunchly disagreed with the regulator’s assertion that their tokens are securities. The Solana Foundation and Polygon Labs both took to Twitter to express their disagreement, while Cardano development company Input Output Global (IOG) claimed there were “numerous factual inaccuracies” in the SEC’s charges.
Despite the SEC’s recent actions, the crypto market has continued to thrive, with some coins even making gains. For instance, Bitcoin (BTC) increased by 0.41% while Ripple (XRP) surged by 2.08%. However, the broader impacts of the SEC’s decisions on the market remain uncertain, and the ongoing debate over whether digital assets should be considered securities will continue to create volatility for investors.
Source: Cointelegraph
