67 Cryptocurrencies Classified as Securities by the SEC

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The U.S. Securities and Exchange Commission (SEC) has intensified its regulatory scrutiny over the digital asset industry, officially classifying at least 67 cryptocurrencies as securities following recent lawsuits against major exchanges Binance and Coinbase. This designation affects over $100 billion in market capitalization—roughly 10% of the total crypto market—and marks a pivotal shift in how blockchain projects and tokens may be regulated moving forward.

These actions are grounded in the Howey Test, a legal framework used to determine whether an asset qualifies as an investment contract, and thus a security, under U.S. law. When applied to cryptocurrencies, the SEC evaluates whether investors are contributing funds to a common enterprise with the expectation of profit primarily from the efforts of others—such as development teams or centralized entities.

👉 Discover how regulatory clarity could shape the future of crypto investments.

The SEC’s Expanding List of Cryptocurrencies Deemed Securities

Over several enforcement actions spanning years, the SEC has steadily built a list of digital assets it considers unregistered securities. These cases often involve initial coin offerings (ICOs), token sales, or platforms where tokens were marketed with promises of returns driven by third-party efforts.

Key Enforcement Cases and Designated Tokens

Ripple Labs – XRP

One of the most high-profile cases involved Ripple Labs, where the SEC alleged that the sale of XRP constituted an unregistered securities offering. While courts later ruled that XRP sales to retail investors qualified as securities, those to institutional buyers did not—a nuanced outcome with broad implications.

Telegram – Gram

The SEC halted the launch of Telegram’s Gram token, arguing that its pre-sale to investors met the criteria of a securities offering. The court sided with the SEC, effectively killing the project before launch.

Bittrex Exchange Case

In a sweeping action against Bittrex, the SEC identified multiple tokens traded on the platform as unregistered securities:

Coinbase Insider Trading Case

Even internal misconduct led to broader classifications. In a case involving insider trading by former Coinbase employees, the SEC named several tokens as securities:

Other Notable Cases

Major Exchange Actions: Binance and Coinbase

The most recent wave came from lawsuits filed against Binance and Coinbase, each naming additional tokens:

From Binance-related entities:

From Coinbase-related listings:

Tokens named in both cases:

These classifications have sent shockwaves through markets, triggering sharp declines in affected altcoins and raising concerns about exchange compliance and listing policies.

Mirror Protocol mAssets: Synthetic Tokens as Securities?

Beyond native cryptocurrencies, the SEC has also targeted synthetic assets created on decentralized finance (DeFi) platforms. In its case against Terraform Labs, the agency claimed that 13 Mirror Protocol mAssets functioned as securities because they mirrored real-world financial instruments like stocks and ETFs.

These include:

Because these tokens derive value from underlying equities and are tied to centralized systems for price feeds and redemption, the SEC argues they resemble traditional structured products subject to securities laws.

👉 Learn how synthetic assets are evolving under global regulatory frameworks.

Market Impact and Industry Response

The regulatory pressure has already had tangible effects:

Industry leaders argue that applying decades-old securities laws to decentralized technologies risks stifling innovation. Others believe clearer regulation can bring institutional adoption and long-term stability.

Frequently Asked Questions

Q: Why does the SEC classify some cryptocurrencies as securities?
A: The SEC uses the Howey Test to assess whether a token involves an investment of money in a common enterprise with profits expected from the efforts of others. If yes, it's treated as a security.

Q: Does being labeled a security mean a cryptocurrency is illegal?
A: No. It means the token must comply with federal securities laws—such as registration or qualifying for an exemption—before being offered or sold in the U.S.

Q: Can decentralized tokens still be securities?
A: Yes. Even if a network becomes decentralized over time, early marketing and reliance on team efforts can lead to classification as a security.

Q: What happens if a crypto project ignores SEC rules?
A: Penalties can include fines, trading bans, forced refunds to investors, or even criminal charges for executives involved in unregistered offerings.

Q: Are stablecoins like BUSD considered securities?
A: While most stablecoins are designed to track fiat currency and may not meet all Howey criteria, BUSD was specifically named in the Binance suit due to its issuance model and centralized control.

Q: How can investors protect themselves?
A: Investors should research whether tokens are registered or exempt, understand associated risks, and consider using compliant platforms that adhere to regulatory standards.

What’s Next for Crypto Regulation?

With Chair Gary Gensler consistently stating that “the vast majority” of crypto tokens meet the Howey Test, further enforcement actions are likely. Crypto.com paused U.S. institutional services amid speculation it could be next in line for scrutiny.

As regulatory clarity evolves, projects may need to restructure tokenomics, pursue registration, or exit U.S. markets entirely. For investors, this underscores the importance of understanding compliance status when evaluating digital assets.

👉 Stay ahead of regulatory trends shaping tomorrow’s crypto landscape.