The SEC has released a statement proclaiming that crypto coins should be labelled as securities and crypto exchanges, therefore, need to register with the SEC.

A security, as commonly defined, is any investment on which the investor hopes to profit via others’ efforts. Essentially, a security is a trADAble financial asset. There have been numerous arguments about whETHer or not crypto assets fall into the security definition, but now it seems the SEC is finally trying to draw the line.

This is all part of the SEC’s attempts to offer further regulation to the crypto market. The SEC stated that the “federal regulatory framework governing registered national securities exchanges and exempt markets is designed to protect investors and prevent against fraudulent and manipulative trading practices” – meaning that the SEC wants to keep investors safe.