“How Will SEC Crackdown Impact Altcoins? Bitcoin OG Explains”.

Proof-of-Work Coins Unlikely to be Affected by SEC Enforcement

Proof-of-work coins which had an equitable distribution upon their introduction are the most probable to dodge being classified as securities by the U.S. SEC, according to Bitcoin OG and educator Dan Held.

Last week, the SEC took legal action against Binance and Coinbase, claiming they had provided a selection of altcoins without registering them as securities. Consequently, many of the tokens mentioned in the lawsuit were removed from major trading platforms, causing their value to plummet.

Held claims that tokens like Litecoin, Dogecoin, and Monero, which had initial offerings that were fair and open, do not meet the SEC’s definition of a security and are therefore unlikely to be affected by the current enforcement actions.

The SEC charges against Binance and Coinbase are disastrous for DeFi.

He stated in an exclusive interview with Cointelegraph that it appears the SEC has set that apart as something they will not pursue.

Held asserted that the SEC’s lawsuit against Coinbase and Binance identified the majority of the tokens as being proof-of-stake coins, which implies a more concentrated ownership due to their pre-mined distribution.

As Held also noted, the current enforcement is largely conducted by one governmental organization, the SEC, thus the intensity of the pressure on the sector is still far from its peak.

Bitcoin and Other Decentralized Cryptocurrencies Can Withstand Governmental Assault

Held asserted that only Bitcoin and a few other sufficiently decentralized cryptocurrencies can endure in the long term, as they are the only ones that could survive a full-scale governmental assault.

To learn more about which cryptocurrencies can withstand the current SEC enforcement, watch the full video on our YouTube channel and make sure to subscribe!