According to Bitcoin OG and educator Dan Held, proof-of-work coins that had a fair distribution at launch are most likely to avoid being labeled as securities by the United States Securities and Exchange Commission (SEC).
Last week, The SEC sued Binance and Coinbase, accused them of offering a number of altcoins as unregistered securities. As a result, many of the tokens mentioned in the lawsuit were removed by major trading platforms, which reduced their prices.
According to Held, tokens that “had a fair or transparent launch” such as Litecoin (LTC), dogecoin (DOGE) and Monero (XMR), do not meet the definition of a security pursued by the SEC and are likely to avoid current interference.
“It definitely seems like the SEC has framed this as something they’re not going to pursue,” he said in an exclusive interview with Cointelegraph.
According to Held, the vast majority of tokens classified as securities by the SEC in its lawsuit against Coinbase and Binance were proof-of-stake coins, or tokens with pre-mined distribution, meaning they have more centralized ownership.
Held also said that 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 maximum.
Held also stated that only Bitcoin (BTC) and several other decentralized cryptocurrencies would survive in the long run because they are the only ones that can withstand an all-out government attack.
To learn more about which cryptocurrencies may withstand the ongoing SEC crackdown, watch the full video on our YouTube channel and don’t forget to subscribe!