• Several tokens labeled as unregistered securities by the SEC are experiencing a bounce-back in trading volumes.
• Despite delistings on some exchanges, these tokens remain actively traded and have drawn renewed interest from traders seeking more volatility.
• The appeal of these tokens persists outside the US, as international exchanges continue to offer them.
Crypto Market Outlook: Tokens Labeled Securities by SEC Gain Momentum
SEC Lawsuit Sparks Volatility and Renewed Interest
The U.S. Securities and Exchange Commission (SEC) recently faced legal actions involving Binance and Coinbase Global in June that led to 19 tokens being deemed unregistered securities. Despite a collective market value loss post-lawsuit, these tokens have seen their trading activity increase and now contribute to 13% of total crypto trading volume.
Delistings Don’t Stop Trading Volume Increase
These tokens were removed from platforms like Bakkt, Robinhood Markets, and Bitstamp but remain actively traded on other exchanges due to traders searching for greater price volatility compared to steadier Bitcoin markets. The court ruling on Ripple Labs’s XRP classification has added complexity to perceptions of these tokens.
Tokens Rebound After Initial Turbulence
Tokens like SOL have regained 11% of its value after initially plummeting by 35%. However, others like ADA remain down by approximately 20%. Interestingly, the appeal of these tokens persists outside the United States where exchanges continue to offer them accounting for 10% of total crypto trading volume worldwide.
International Exchanges Play Major Role
International giants like Binance and Coinbase have refrained from delisting these tokens despite their removal from U.S.-based exchanges – this has contributed significantly to their ongoing trading activity.
Conclusion: Increased Trading Activity Despite Setbacks
Despite initial turbulence stemming from the SEC lawsuit, several token prices have rebounded with renewed interest from traders looking for indicators of regulatory clarity within cryptocurrency markets – showing that increased trading activity can persist even when facing setbacks like delistings or court rulings