CoinGecko launches index for crypto tokens alleged as SEC securities, valued at $91 billion.
CoinGecko launches index for crypto tokens alleged as SEC securities, valued at $91 billion.
CoinGecko Introduces New Category for SEC-Designated Securities
The cryptocurrency industry is constantly evolving, and with it comes the need for clarity in the complex regulatory landscape surrounding digital assets. To address this need, cryptocurrency data aggregator CoinGecko has launched a new category on its platform that lists cryptocurrencies designated as securities by the United States Securities and Exchange Commission (SEC).
This move by CoinGecko aims to provide investors with a curated selection of crypto assets that have previously come under scrutiny by the financial regulator for their potential classification as securities. These tokens are sorted based on their market capitalization, with Binance Coin (BNB) taking the lead position, followed by notable tokens such as Cardano (ADA), Solana (SOL), and Tron (TRX).
The index was meticulously assembled by compiling tokens that had been subject to SEC-related lawsuits in the past. Currently, this category consists of 24 tokens. However, the SEC, in recent lawsuits against top cryptocurrency exchanges Coinbase and Binance, has identified 68 cryptocurrencies as securities, representing nearly 10% of the entire crypto market cap.
The perspective of SEC Chair Gary Gensler, who stated that “everything other than Bitcoin” should be regarded as a security, has sparked discussions within the crypto community. If this perspective is upheld, it could potentially bring a significant portion of the approximately 25,500 cryptocurrencies listed on platforms like CoinMarketCap under SEC jurisdiction.
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To further support investors in navigating the regulatory landscape, other cryptocurrency data aggregators like CoinMarketCap have also introduced specific categories for cryptocurrencies identified as securities by the SEC. This categorization system aims to facilitate easier tracking, similar to how sectors are organized in traditional stock markets. These categories encompass various token types, such as Layer 1s, smart contract tokens, and stablecoins.
Currently, CoinMarketCap lists 65 out of the 68 tokens designated as securities, contributing around 7% to the total cryptocurrency market capitalization. On the other hand, CoinGecko features 48 tokens in its “Alleged SEC Securities Tokens” category, with a combined market capitalization of $91.5 billion. Notably, both platforms rank BNB, ADA, and SOL among the top tokens within this classification.
It is important to note, however, that not all tokens face the same regulatory scrutiny. Ripple’s XRP, which previously faced regulatory uncertainty, has been excluded from the SEC-designated securities category following a court ruling that determined the token’s distribution by Ripple did not meet the criteria for an investment contract.
In an industry driven by constant regulatory developments, the introduction of a separate category for SEC-designated securities provides valuable insights for investors. It helps them to understand potential market volatility arising from legal actions and serves as a resource for traders seeking to navigate changing regulatory dynamics and their impact on token prices.
CoinGecko’s move to introduce a dedicated category for SEC-designated securities underscores the industry’s commitment to addressing regulatory complexities and providing investors with clearer insights into the evolving cryptocurrency landscape. With the growing adoption of blockchain technology and cryptocurrencies, it is crucial to have transparency and regulatory clarity to foster trust and stability in the digital asset ecosystem.
