Are Cryptocurrencies Securities?

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In the crypto market, there are more than 20,000 thousand cryptocurrencies and every day new ones are still entering the market. When developing these crypto projects there’s one particular thing that the crypto projects put in mind and they make sure that the information is understood properly when passed and that’s the coins are purely for sale and not securities.

Developers have learnt their lessons from crypto projects that have gone down over the past years because of their coins being used for security. When a coin is being offered for security, they are bound by all kinds of regulations and restrictions and that way limiting the way it can operate if they can operate freely or as planned it can lead to the downfall of the coin and this is very common in the U.S.

The reason why crypto projects make sure that they are not selling securities is that they know the price they would pay for it and in the past, for years many crypto projects that didn’t do well made it clear that they are not selling securities have all gone down and there have been more than 80 enforcement actions to be taken by the U.S SEC (Securities and Exchange Commission) if a crypto project violates the security laws.

However, the crypto projects that were taken down by the SEC for violating the securities were not all genuine as some of them were fraudulent and while some didn’t understand the purpose of the law but they just wanted to play safe and be on the right side of the law but still get penalized for not following the rules of the SEC. Also, SEC once announced that nine coins listed on Coinbase were securities but the crypto exchange denied the fact and is ready for the blowback.

However, there's a general question, if a project that is created tends not to be security but the crypto exchange platform that it's listed on is being treated as a security, what will the restrictions be? Will there be new regulations?

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