SEC Details Which Altcoins It Considers Securities and Why! Here Are Those Altcoins

U.S. Securities and Exchange Commission (SEC), MATIC, MANA, CHZ, SAND and LUNA provided detailed explanations as to why it considers its tokens as securities.

Polygon (MATIC)

Polygon has clearly stated in its Whitepaper that it will use investment proceeds from its private and public fundraising activities to develop and expand its business. The company also frequently promotes when crypto asset trading platforms allow trading of MATIC.

Decentraland (MANA)

Decentraland offered discounted prices for MANA to early contributors; the SEC views this as indicative of investment contracts and therefore classifies MANA as a security.

Chile (CHZ)

The Chiliz team has publicly stated that revenue from CHZ sales will be used to fund the development, marketing, commercial activities, and growth of the Chiliz protocol, which will in turn increase demand for CHZ associated with the protocol.

Sandbox (SAND)

In a blog post announcing their “exchange listing,” Sandbox encouraged liquidity of SAND tokens on the secondary market following their “listing,” a move that the SEC interpreted as a strategy to attract investors with the promise of profits.

Terraform (LUNA)

In a public interview in 2021, Terraform’s business development manager referred to LUNA as an integral part of the company’s growth, further supporting the SEC’s classification of LUNA as a security.

The SEC’s detailed justification emphasizes that the agency focuses on the intent and promotional strategies of token issuers, which it believes are consistent with the characteristics of investment contracts under securities laws.

This classification has significant implications for the regulatory treatment of these tokens and the platforms that trade them.

*This is not investment advice.