In light of the increasingly convoluted regulatory environment around digital assets, CoinGecko, a prominent cryptocurrency data aggregator, has introduced a new category to list cryptocurrencies classified as securities by the United States Securities and Exchange Commission (SEC). The novel “Top Alleged Securities Coins” section features carefully selected crypto assets that have previously been analyzed by the financial watchdog due to their possible definition as securities.
These tokens are arranged according to market capitalization, with Coin (BNB) occupying the top spot, trailed by notable players such as Cardano (ADA), Solana (SOL), and Tron (TRX). The index was compiled with an extraordinary attention to detail, using tokens that were subject to past SEC-related litigations.
However, over the broad spectrum of legal confrontations with major crypto exchanges, the SEC has dubbed 68 cryptocurrencies securities, representing nearly 10% of the market. This highlights SEC Chair, Gary Gensler’s, statement that “everything other than Bitcoin” could be viewed as securities, which has stirred a considerable amount of discussions amongst the cryptocurrency community. If this outlook gains acceptance, it might propel a substantial chunk of the approximately 25,500 cryptocurrencies allegedly under the SEC’s authority.
Similarly, assisting its users with easier tracking, other data aggregators like CoinMarketCap have also categorized cryptocurrencies recognized as securities by the SEC. It organizes these categories in the likeness of how sectors are arranged in conventional stock markets, capturing diverse token kinds such as Layer 1s, smart contract tokens, and stablecoins.
Both CoinMarketCap and CoinGecko share a common classification: BNB, ADA, and SOL are among the top-ranked tokens within the securities token category on both platforms, contributing to a significant portion of the overall cryptocurrency market capitalization.
Interestingly, Ripple’s XRP, despite previously grappling with regulatory dilemmas, does not find a place in this section. This exclusion follows a recent court verdict which concluded that XRP’s circulation by Ripple did not meet the investment contract parameters.
As the SEC remains tenaciously active against various cryptocurrency components, the introduction of a separate class for its designated securities pushes for clarity amidst potential market volatility triggered by legal proceedings. By catering to traders who aim to safely navigate the fluctuating regulatory currents and their effect on token prices, this categorization emerges as a crucial tool.
CoinGecko’s initiative to add a distinct category for SEC-recognized securities underscores the cryptocurrency sector’s pursuit of simplifying complex regulations and offering investors more lucid insights into the dynamic crypto world.
Source: Cryptonews
