The SEC will keep an eye on many of these altcoins beyond Ripple (XRP) in 2021

Following the fact that the SEC sued Ripple for the controversy surrounding XRP, there were many predictions that the SEC would keep an eye on more names. Yesterday, Tone Vays, one of the professional derivatives traders, commented on the SEC’s action in 2021 on some Altcoins. And the names below will likely be in the sights of the SEC for many reasons.

Here’s the list of possible hammers by SEC besides Ripple from the top 25 cryptocurrencies that could drop in 2021

Like XRP, altcoins like Stelar (XLM), Binance (BNB), (CRO), Chainlink (LINK), Tezos (XTZ), Polkadot (DOT), and Cardano (ADA) will most likely fall into the SEC’s sight. The reason is probably that these tokens also sold ICOs with a commitment to generating profits for the buyers.

Some opinions suggest that the aforementioned altcoins have a high potential to harm users. And some believe that is why one of the reasons why the Celsius Network and the CEL are growing and gaining full trust. But there are also many opinions that the Celsius token is a scam. Looks like they were registered with the SEC, but it probably will not save them.

Back to the Ripple story. The central question is whether XRP is a currency or security. Currency is a medium of exchange and store of value, like dollars, gold, or frequent flier miles. Security, on the other hand, is a financial investment contract, typically tradeable, like a stock or bond. This matters because different laws and regulations apply.

Ripple notes that the XRP ledger is decentralized and open-source, operating on consensus among a growing community of users and developers making new products with it, and XRP is not an investment contract in their company nor something they control. If investors want to invest in Ripple, they would buy shares in the company itself, not XRP.

This determination has not stopped the SEC from claiming that Ripple’s practices with XRP amount to investment contracts under the Howey test and hence require disclosures as securities.

The SEC has brought similar suits against other cryptocurrencies, notably Grams from Telegram and Kik Interactive tokens, causing tension in the cryptocurrency world as America’s eight financial regulators jockey for pre-eminence as the top cop in fintech.

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