Good News for Bitcoin and Ethereum (Bad News for Everything Else)

TL;DR

• In multiple recent filings, the SEC made it clear that it saw BNB, SOL, ADA and MATIC, as unregistered securities (the sale of which is a big no-no).

• If the SEC can prove this in court, the sale of these tokens will be banned in the US. Not great. At least…not great, depending on where you’re standing.

• Many investors have taken Bitcoin and Ethereum’s omission from these filings as an indicator that both coin’s are safe from the SEC’s wrath.

• How do other altcoins go about dodging the crosshairs of the SEC? By decentralizing as fast as possible (because sufficiently decentralized tokens aren’t seen as securities).

• Or by lobbying congress to pass laws that allow a grace period for projects to decentralize, without first registering with the SEC.

Full Story

If market positioning of crypto tokens ain’t your thing – you can skip this one.

(Seriously, we won’t be offended).

Ok. Still here? Well then, we have a question for you:

You know the saying ‘what’s bad for BNB coin (BNB), Solana’s SOL, Cardano’s ADA and Polygon’s MATIC, is good for Ethereum & Bitcoin’?

You shouldn’t, cause we just made it up.

(But boy would it be relevant right now if it were real saying).

In multiple recent filings, the SEC made it clear that it saw BNB, SOL, ADA and MATIC, as unregistered securities (the sale of which is a big no-no).

If the SEC can prove this in court, the sale of these tokens will be banned in the US. Not great.

At least…not great, depending on where you’re standing.

Many investors have taken Bitcoin and Ethereum’s omission from these filings as an indicator that both coin’s are safe from the SEC’s wrath.

Jeff Mei, COO of crypto exchange BTSE, had this to say:

“We’ve seen somewhat of a bloodbath for altcoins. Most likely this is due to the fact the SEC’s lawsuits name a basket of altcoins as securities, while not categorizing bitcoin and ether in the same class.”

Ok, so how do other altcoins go about dodging the crosshairs of the SEC?

Our understanding is that they have two options:

1. Decentralize as fast as humanly possible (because sufficiently decentralized tokens aren’t seen as securities).

2. Lobby congress to pass laws that allow a grace period for projects to decentralize, without first registering with the SEC.

Which puts most altcoins between a rock and a hard place, because both are slow processes being used to solve immediate problems.

The silver lining: the crypto market is a global market. One nation state’s loss is another’s gain.