Algo, Flow rebound from all-time lows, others reject SEC securities label

The United States securities regulator designated a slate of cryptocurrencies as securities in a recent lawsuit, including Algorand (ALGO) and FLOW (FLOW), which hit all-time low prices following the announcement.

According to CoinGecko, ALGO and FLOW touched their all-time lows of $0.098 and $0.46 on June 10, having lost almost 30% in the past seven days. statistics,

Both have improved slightly since June 10, with ALGO up more than 12.5% ​​and FLOW up more than 10.5%.

Last week the Securities and Exchange Commission (SEC) sued crypto exchanges Binance and Coinbase on June 5 and 6 respectively. In the process, it labeled 16 new cryptocurrencies as securities, including Flow and Internet Computer (ICP).

ALGO was exposed in the SEC’s case against Binance, but was first singled out in April’s lawsuit against Bittrex.

ICP has also seen a decline of around 25% in the last one week and is currently is trading around $3.65 — only 25 cents from its December 2022 all-time low of $3.40.

securities definition rejected

Solana (SOL), Cardano (ADA) and Polygon (MATIC) were also caught in the SEC’s securities net and the creators of all three have staunchly denied the regulator’s claim.

On June 10, Polygon Labs tweeted a response to the SEC’s definition of MATIC without directly addressing the regulator.

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It highlighted that Polygon was developed and deployed outside the US and that MATIC was available globally “with functions that did not target the US at any time.”

We are proud of the history of Polygon Networks – developed outside the US, deployed outside the US, and focused on the global community that supports the network to this day. Matic was an essential part of Polygon Technology from day 1, ensuring that the network…

— Polygon (Labs) (@0xPolygonLabs) June 10, 2023

The Solana Foundation similarly said on Twitter on June 10 that it “disagrees with the characterization of SOL as a security.”

Cardano development company Input Output Global (IOG) Said On June 7 it was “aware” of the SEC’s definition of the ADA and claimed there were “multiple factual inaccuracies” by the regulator.

“Under no circumstances is the ADA a security under the US securities laws. It never has been,” the firm wrote in a blog post.

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