SEC Explains Why #TerraLunaClassic , MATIC & 3 Other Crypto Are Securities
In a recent litigation filed by the U.S. Securities and #exchange Commission (SEC) against Consensys, the agency has clarified its stance on the classification of several prominent cryptocurrencies as securities. These include Terra Luna Classic ($LUNA ), Polygon ($MATIC ), The Sandbox (SAND), Chiliz (CHZ), and Decentraland ($MANA ). This legal action underscores the SEC’s contention that these digital assets were initially offered and sold as investment contracts.
Hence, the SEC believes these cryptocurrencies fall under the regulatory purview of securities laws. For context, #Consensys , a major player in the crypto space, has been targeted for allegedly facilitating the trading of these assets through its #Metamask Swaps platform.
The US SEC argues that each of these tokens was marketed with promises of future profits derived from the efforts of the issuing entities, Consensys and related third parties. This expectation of profit was cultivated through various means. These include public statements, marketing materials, and the operational strategies outlined by the token issuers.
