Proof-of-work coins that had a fair distribution at their launch are the most likely to avoid being labeled as securities by the United States Securities and Exchange Commission (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 tanked their prices.
According to Held, Tokens that “had fair or transparent launches,” such as Litecoin (LTC), Dogecoin (DOGE) and Monero (XMR), do not match the definition of a security that the SEC is following and are likely to avoid the current crackdown.
“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 with a pre-mined distribution, meaning they have more centralized ownership.
Held also said 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 (BTC) and a few other decentralized cryptocurrencies would survive in the long run, as they are the only ones that can endure an all-out government attack.
To find out more about which cryptocurrencies can resist the ongoing SEC crackdown, watch the full video on our YouTube channel and don’t forget to subscribe!