Which Cryptocurrencies Has the SEC Classified as Securities? Key Insights and Common Traits

·

In recent months, the U.S. Securities and Exchange Commission (SEC) has intensified its regulatory scrutiny over the crypto industry, filing lawsuits against major exchanges like Binance and Coinbase. These actions have sent shockwaves across the digital asset market, triggering volatility and prompting widespread debate about the classification of cryptocurrencies as securities.

With over 67 digital assets now labeled as securities by the SEC—representing more than $100 billion in market value—investors and industry participants are asking: Which cryptocurrencies are on this list? What do they have in common? And what does this mean for the future of crypto regulation?

This article breaks down the SEC’s latest enforcement moves, analyzes the traits shared by these “security tokens,” and explores the broader implications for investors and platforms.

What Cryptocurrencies Has the SEC Identified as Securities?

On June 5, 2025, the SEC filed a lawsuit against Binance and its CEO, Changpeng Zhao (CZ), alleging violations of U.S. securities laws. In the complaint, the SEC designated several tokens traded on Binance as unregistered securities, including:

Just one day later, the SEC followed up with a lawsuit against Coinbase, naming additional tokens it claims are unregistered securities:

Beyond these two high-profile cases, the SEC has previously classified other digital assets as securities in separate enforcement actions. Notable examples include:

Additionally, the SEC alleged that 13 synthetic assets from Terra’s Mirror Protocol—such as mAAPL (mirrored Apple stock) and mTSLA (mirrored Tesla stock)—also qualify as securities due to their direct ties to traditional equities.

👉 Discover how regulatory developments impact your crypto portfolio.

Collectively, these actions signal a broad regulatory stance: if a token functions like an investment contract—especially when tied to centralized development efforts or profit expectations—it may fall under SEC jurisdiction.

Common Traits Among SEC-Classified Crypto Securities

Despite the diversity in blockchain use cases, most of the tokens labeled as securities share key characteristics. According to market analyst Miles Deutscher and legal experts, these include:

1. Initial Fundraising Events

Nearly all listed tokens originated from structured fundraising activities such as Initial Coin Offerings (ICOs), private sales, or token launches with clear investor participation. These events often resemble traditional securities offerings, where investors contribute capital in exchange for future utility or value.

2. Centralized Development Teams Promising Growth

Projects behind these tokens typically have identifiable teams or entities actively developing the protocol. The SEC argues that when a central group drives innovation, marketing, or ecosystem expansion—and investors rely on those efforts for returns—it satisfies the "efforts of others" criterion under securities law.

3. Public Claims of Value Appreciation

Many projects promoted their tokens through official channels using language implying potential profits. Phrases like “high-growth opportunity” or “invest in the future of X” can be interpreted as creating an expectation of profit—a core component of the Howey Test.

Understanding the Howey Test: The Legal Framework Behind SEC Actions

The SEC relies on the Howey Test, a legal standard established by the U.S. Supreme Court in 1946, to determine whether an asset qualifies as a security. An investment is considered a security if it meets all four of the following criteria:

  1. There is an investment of money
  2. In a common enterprise
  3. With an expectation of profits
  4. Derived from the efforts of a promoter or third party

The SEC asserts that most of the named cryptocurrencies meet at least three of these conditions—particularly emphasizing investor reliance on project teams for value creation.

While critics argue that applying a 1946 framework to decentralized digital assets is outdated, regulators maintain that investor protection must remain paramount—even in innovative markets.

Implications of Being Labeled a Security

Being classified as a security carries significant consequences for both platforms and investors.

📉 Market Volatility and Price Declines

Following the SEC announcements, several named tokens experienced sharp price drops:

Even unrelated altcoins saw contagion effects, highlighting market sensitivity to regulatory news.

🚫 Trading Restrictions on U.S. Platforms

Once a token is deemed a security, U.S.-based exchanges must delist it unless it complies with registration requirements—a costly and complex process. For example, Robinhood delisted multiple SEC-targeted tokens shortly after the Coinbase lawsuit.

This forces domestic investors into a narrower range of available assets and pushes trading activity offshore or onto decentralized exchanges (DEXs).

🔁 Increased Regulatory Precedent

Each enforcement action sets a precedent. As the SEC continues targeting major players, smaller projects may face similar scrutiny. This could lead to broader classification of utility tokens as securities—potentially reshaping how new projects launch and distribute tokens.

👉 Stay ahead of regulatory shifts with real-time market insights.

Frequently Asked Questions (FAQ)

Q: Are Bitcoin and Ethereum considered securities by the SEC?
A: As of now, the SEC has not classified Bitcoin (BTC) as a security, viewing it as a commodity. Ethereum (ETH) occupies a gray area—while former SEC Chair Gary Gensler suggested ETH might qualify as a security, no formal action has been taken.

Q: Can a cryptocurrency be both a utility token and a security?
A: Yes. A token’s classification depends on its use case and distribution method. If initial investors expect profits based on team efforts—even if later used for utility—it may still be deemed a security.

Q: What happens if a token is ruled a security but wasn’t registered?
A: The issuer may face penalties, lawsuits, or forced refunds. Exchanges listing the token without proper registration can also be fined or required to delist it.

Q: How can projects avoid being classified as securities?
A: Emphasize decentralization, avoid profit-based marketing, ensure immediate utility upon launch, and limit centralized control over development and treasury funds.

Q: Will more cryptocurrencies be added to the SEC’s list?
A: It’s highly likely. With ongoing investigations into other major platforms and DeFi protocols, further classifications are expected in 2025 and beyond.

Q: How does this affect global crypto markets?
A: While U.S. regulations don’t directly apply overseas, they influence global standards. Many exchanges voluntarily delist contested tokens worldwide to avoid legal risks.

Navigating Crypto Markets Amid Regulatory Uncertainty

As regulatory clarity remains elusive, investors must adopt strategies that account for compliance risks and market volatility.

Platforms offering advanced trading tools—such as short-selling and leveraged positions—enable traders to hedge risk or capitalize on downward movements during regulatory sell-offs. For instance, during the June 2025 selloff, savvy traders used bearish positions to profit from declining prices in SOL, ADA, and MATIC.

👉 Learn how to hedge your portfolio during regulatory downturns.

Staying informed through reliable sources, monitoring SEC filings, and understanding token fundamentals are essential practices in today’s evolving landscape.

Final Thoughts

The SEC’s aggressive approach marks a pivotal moment in crypto regulation. By applying decades-old securities laws to modern blockchain innovations, regulators aim to protect investors—but also risk stifling innovation.

For market participants, understanding which tokens are under scrutiny—and why—is crucial for making informed decisions. Whether you're holding long-term investments or engaging in active trading, awareness of regulatory trends can help you navigate uncertainty with confidence.

As the industry evolves, one thing is clear: compliance, transparency, and education will shape the future of digital finance.

Core Keywords: SEC cryptocurrency regulations, cryptocurrencies classified as securities, Howey Test crypto, Binance SEC lawsuit, Coinbase SEC case, crypto security tokens, SEC vs crypto exchanges, regulatory impact on crypto