SEC Hits 2 Ethereum-Based Altcoins: Prices Dropped Hard!

The decision taken by the US Securities and Exchange Commission (SEC) on 2 altcoins brought a sharp decline in prices.

In its statement on June 28, the SEC noted that Ethereum-based staking protocols Lido DAO (LDO) and Rocket Pool (RPL) provide securities services.

This statement of the regulatory body caused a decrease of up to 23% in the price. In the details of the statement shared by SE, it was stated that the Ethereum investments made in these two platforms were for profit, and it was emphasized that the investment contracts were within the scope of securities:

Lido and Rocket Pool staking programs are each offered and sold as investment contracts and therefore securities. Investors invest Ethereum in a partner organization with the expectation of a reasonable profit from their management efforts.

SEC recently said that Ethereum is also a security, but this decision was met with reaction from the community. The SEC has still not managed to clarify the status of Ethereum.

Prices fell hard

The SEC's statement brought sharp declines in LDO and RPL prices. The two projects, which went into deep decline very soon after the announcement, brought with them hundreds of thousands of dollars of liquidation.

According to data provided by CoinGecko, LDO lost 23% in value, from $2.4 to $1.8, and RPL lost 8% in value, falling from $20 to $18.5.