Are Cryptocurrencies Securities?

[Nomad]

One of the reasons why the United States Security Exchange Board filed cases against multiple crypto projects is because the SEC believed that cryptos are basically securities.Not just SEC, a lot of individuals and companies are confused on whether crypto currencies are securities or not. Security is something you invest and make money through investment and trading. The potential of generating profits through investment and trading makes crypto as a security.

 

[Riberet19]

One of the reasons why the United States Security Exchange Board filed cases against multiple crypto projects is because the SEC believed that cryptos are basically securities.Not just SEC, a lot of individuals and companies are confused on whether crypto currencies are securities or not. Security is something you invest and make money through investment and trading. The potential of generating profits through investment and trading makes crypto as a security.

Well according to what I understand, a Security is the way in which you buy a "value" of a company in the form of a tradable asset, so knowing this, we can categorize many cryptos as security, because they are created by companies, many of them public, so they could be categorized as such, for example Bitcoin cannot be hindered to any company so it cannot be categorized as security.

 

[Nomad]

Most altcoins are created by private companies. Even though these currencies are regarded decentralized currency, they are controlled by companies. So they can be security. One of the major issues in crypto market is that the companies that create these coins can be shut down any time.