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

TL;DR

• In multiple recent filings, the SEC has made it clear that it viewed 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 in the US will be banned. Not good. At least… not great, depending on where you stand.

• Many investors have taken the omission of Bitcoin and Ethereum from these filings as an indication that both coins are safe from the wrath of the SEC.

• How are other altcoins coping with dodging the SEC’s crosshairs? By decentralizing as soon as possible (because enough decentralized tokens are not seen as collateral).

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

Full story

If crypto tokens market positioning is not your cup of tea, you can skip this one.

(Seriously, we won’t be offended).

OK. Still here? Well, 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, because we just made it up.

(But boy, would it be relevant now if it was an actual saying).

In multiple recent filings, the SEC has made it clear that it viewed 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 in the US will be banned. Not good.

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At least… not great, depending on where you stand.

Many investors have taken the omission of Bitcoin and Ethereum from these filings as an indication that both coins are safe from the wrath of the SEC.

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

“We have seen a kind of carnage for altcoins. Most likely, this is due to the SEC’s lawsuits citing a basket of altcoins as securities, while not putting bitcoin and ether in the same class.”

Ok, so how are other altcoins going to avoid the SEC’s crosshairs?

We understand they have two options:

1. Decentralize as soon as humanly possible (because enough decentralized tokens are not seen as securities).

2. Lobby Congress to pass laws allowing a grace period for projects to decentralize, without first registering with the SEC.

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

The silver lining: The crypto market is one global market. The loss of one nation-state is the gain of another.