Proof-of-work coins that had a fair distribution at their launch are the most likely to avoid being labeled as securities by the U.S. SEC, according to Bitcoin OG and educator Dan Held.
Last week, the SEC sued Binance and Coinbase, accusing them of offering a number of altcoins as unregistered securities. As a result, many of the tokens mentioned in the lawsuit were delisted by major trading platforms which made their price tank.
According to Held, Tokens that “had fair or transparent launches”, such as Litecoin, Dogecoin and Monero, do not match the definition of a security that the SEC is following and therefore are likely to avoid the current crackdown.
Related: SEC charges against Binance and Coinbase are terrible for DeFi
“It definitely seems like the SEC has carved that out as something that they won’t be going after”, he said in an exclusive interview with Cointelegraph.
According to Held, the vast majority of the tokens classified as securities by the SEC in its lawsuit against Coinbase and Binance were proof-of-stake coins, or tokens who had a pre-mined distribution, which means they have a more centralized ownership.
As Held also pointed out, the current crackdown is mainly carried out by a single government entity, the SEC, which means the level of pressure on the industry is still far from reaching the maximum level.
Held also stated that only Bitcoin and a few other cryptocurrencies that are decentralized enough will survive in the long run, as they are the only ones that can survive an all-out government attack.
To find out more about which cryptos can resist the ongoing SEC crackdown, watch the full video on our YouTube channel, and don’t forget to subscribe!
#altcoins #survive #SEC #crackdown #Bitcoin #explains