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The U.S. Securities Regulator has designated a list of cryptocurrencies as securities in recent lawsuits, including Algorand (ALGO) and Flow (FLOW), which hit record low prices after the announcement.
On June 10, ALGO and FLOW hit their respective all-time lows of $0.098 and $0.46, down about 30% over the past seven days, according to data from CoinGecko.
Since then, both have bounced back slightly, with ALGO up over 12.5% and FLOW rebounding just over 10.5% since June 10.
Last week, the Securities and Exchange Commission (SEC) sued cryptocurrency exchanges Binance and Coinbase on June 5 and 6, respectively. At the same time, he marked 16 new cryptocurrencies as securities, including FLOW and Internet Computer (ICP).
ALGO was mentioned in the SEC case against Binance, but was first mentioned in the April lawsuit against Bittrex.
Last week, ICP also fell by about 25% and is currently trading around $3.65, just 25 cents below its all-time low of $3.40 since December 2022.
Securities definition rejected
Solana (SOL), Cardano (ADA) and Polygon (MATIC) also hit the SEC securities net, and the creators of all three strongly rejected the regulator’s claims.
On June 10, Polygon Labs tweeted a response to the SEC’s definition of MATIC without directly addressing the regulator.
Related: SEC allegations against Binance and Coinbase are terrible for DeFi
It highlights that the Polygon was developed and deployed outside the US, and MATIC was available worldwide “with activities that were never targeted at the US”.
We are proud of the history of the Polygon network – developed outside the US, deployed outside the US, and focused to this day on the global community that supports the network. MATIC was a necessary part of the Polygon technology from Day 1, ensuring that the network would be…
— Polygon (Labs) (@0xPolygonLabs) June 10, 2023
On June 10, the Solana Foundation also tweeted that it “disagrees with the characterization of SOL as a security.”
Developer Cardano Input Output Global (IOG) said on June 7 that it “knows” the SEC’s definition of ADA and said the regulator has made “numerous factual inaccuracies.”
“Under no circumstances is the ADA a security under US securities laws. This has never happened before,” the firm wrote on its blog.