Following Donald Trump’s election victory, cryptocurrencies previously targeted by the US Securities and Exchange Commission (U.S. SEC) as unregistered securities are rallying in price as investors anticipate regulatory clarity with the potential removal of SEC Chair Gary Gensler.
What’s the significance: The new presidency and a possibility of an upcoming new Chair suggests the SEC may ease its strict crypto regulations, opening more opportunities for cryptocurrencies and related ETFs.
Key details:
- On November 6th, Donald Trump won the 2024 election, defeating Vice President Kamala Harris.
- In a report from Bloombergtokens like Uniswap and Polygon, both named in previous SEC complaints, rose 38% and 20%, outpacing Bitcoin’s 14% gain during Trump’s win.
- Ether, the second largest crypto after Bitcoin, also jumped in value by 21%.
Looking back: In early 2023, SEC Chairman Gensler stated that all cryptocurrencies, except Bitcoin, are considered securities under the SEC’s jurisdiction, emphasizing that the SEC has the legal tools to regulate them.
- Under Gensler, the SEC pursued aggressive actions against the crypto industry, including cases against Coinbase and Consensys.
What is a security: In U.S. law, securities are financial instruments or investment contracts that signify ownership in a company, debt, or entitlement to profits or assets.
- These assets are overseen by the US SEC) to protect investors and ensure fair markets.
- Identifying an asset as a security subject it to regulatory requirements for issuance, trading, and disclosure, aiming to prevent fraud and protect investors.
List of Crypto Classified as Security: In June last year, the US SEC classified 12 cryptocurrencies as securities in its lawsuit against Binance:
- BNB (Binance Coin)
- BUSD (Binance USD)
- SOL (Solana)
- ADA (Cardano)
- MATIC (Polygon)
- FIL (Filecoin)
- ATOM (Cosmos)
- SAND (The Sandbox)
- MANA (Decentraland)
- SOMETHING (Algorand)
- AXS (Axie Infinity Shards)
- COTI (COTI)
The numbers: As of writing, data from CoinGecko shows that the total market cap of the top cryptocurrencies labeled as alleged SEC securities is currently $244 billion, reflecting a 3.8% increase over the past 24 hours.
- The top 10 tokens display a mix of significant gains and stable growth, with Solana and Cardano seeing notable increases in both price and trading volume. All data are updated up to Nov. 8, two days after Trump’s victory.
| Token | Symbol | Price | 24hr Change | 24hr Volume |
| Solana | SOL | $199.59 | +5.8% | $5,985,122,429 |
| BNB | BNB | $598.23 | -0.6% | $1,091,050,465 |
| Cardano | ADA | $0.4264 | +14.7% | $1,087,732,210 |
| TRON | TRX | $0.1608 | -1.0% | $475,692,126 |
| Toncoin | TON | $4.90 | +0.2% | $387,541,126 |
| NEAR Protocol | NEAR | $4.20 | -0.5% | $396,089,580 |
| Internet Comp. | ICP | $7.74 | -2.4% | $179,649,871 |
| Filecoin | FIL | $3.73 | -0.8% | $209,488,740 |
| Cosmos Hub | ATOM | $4.49 | -1.5% | $154,179,748 |
| Algorand | SOMETHING | $0.1221 | -0.4% | $78,030,963 |
- Current data for the other token flagged by SEC as securities:
| Token | Symbol | Price | 24hr Change | 24hr Volume |
| Binance USD | BUSD | $0.9994 | -0.2% | $7,520.90 |
| Polygon | MATIC | $0.3431 | +0.85% | $6,861,731 |
| The Sandbox | SAND | $0.2551 | -0.4% | $61,663,316 |
| Decentralized | MANA | $0.3015 | -0.1% | $42,327,314 |
| Axie Infinity Shards | AXS | $4.98 | +1.8% | $73,141,233 |
| COTI | COTI | $0.09518 | -0.6% | $24,767,349 |
Similar to the top tokens, tokens flagged by the SEC show mixed performance in the last 24 hours, with MATIC and AXS posting gains, BUSD remaining stable, and others seeing minor declines.
Trump’s Vow: In July, it can be remembered that Trump pledged at the Bitcoin 2024 conference to make the US a crypto hub, vowing to retain government-held bitcoin, end anti-crypto policies, and fire SEC Chair Gary Gensler if elected.
What to watch: Donald Trump’s second term is expected to have a major impact on the crypto industry.
- If Trump’s term brings regulatory relaxation, the crypto market could see fewer restrictions, a potential boost in value, and a rise in institutional interest through ETFs.
The bottom line: Investors are optimistic about a friendlier regulatory climate, anticipating that Trump’s administration will usher in a more favorable environment for cryptocurrency expansion.
Worth reading: Bitcoin hit a new all-time high of $75,060, driven by increased institutional interest and optimism over a potential Trump presidency.
- Currently, Bitcoin is priced at $75,945.55 and has been up by 1.8% in the last 24 hours.
This article is published on BitPinas: Tokens Classified as Securities by SEC See Gains After Trump Win
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