Bitcoin Forum

Algorand is one of the altcoins I hold in my portfolio and recently starting buying more while prices are low.

I Will not panic with the news that came out yesterday with the SEC calling Algorand a security but I will stop buying for a few days or so to see how the market reacts.

Just wondering what everyone's thoughts are on this claim from the SEC?

My thinking is SEC can attack and call any cryptocurrency as a security but they don't have full rights to do it successfully.

If they arbitrarily do such attacks, will they pass Howey test (https://www.investopedia.com/terms/h/howey-test.asp)?

I believe they will fail with the test and in law suit, they won't win those cases. Commodity, security will not be decided by only SEC. There are other regulatory authorities in the USA. will challenge SEC accusations.

In addition, in long run if more cryptocurrency companies leave the USA. which leads to negative impacts on their economy, regulations will be changed to be softer and more comfortable for cryptocurrency companies as well as to be competitive enough with other countries.

They'll call any project they think as a security and they're unstoppable for that. Anyway, if you do solely believe on the project they're calling it security or not, you'll just stay whatever they say.

Because SEC's move are not going to change and soon, they're going to call other projects as security as well whether it's on your portfolio or not.

I'm sure they have all the rights.



The notion that the SEC perceives most altcoin as securities are not recent news. Gary Gensler, the current SEC chairman, also alleged so.



What the current case is mainly tied to Bittrex, since what the lawsuit is all about is SEC trying to charge Bittrex as an unregistered security exchange. What they are doing and need is to establish one of the few tokens listed as securities. So ALGO is among other tokens. So, I don't think ALGO is specifically the main highlight here, I see the prices are also hardly affected.

Regarding the lawsuit, it can be seen here: https://www.sec.gov/news/press-release/2023-78

Gensler did call all altcoins to be security including ETH and even the stablecoin so it's not surprising anymore when they pronounce Algorand to be one.
but altcoins as Security are classified as not official though. nothing to worry yet.

Gensler is determined to kill crypto but it may change soon because he could be removed from office, there are people from the high place who are pushing back the crypto crackdown.

SEC calling this coin or that token as security sounds like an old news now to be honest. Just consider that they will treat all altcoins except Ethereum as the same so you don't get surprised or worried when that time comes. Anything that had raised funds by coin offerings or token sales to US citizens will most likely be called a security.

They call everything a security these days, they do not even look at the coin or the token, they just look if its crypto or not and if it is then they call it a security. I do not know why that makes it any bad though, they can call whatever they want, who cares what SEC says, sure I think Americans who have to trade based on that could care, that is understandable but that doesn't mean that we should all care about it as well, we could totally ignore it. I am not American nor ever been to America, so I could simply keep on ignoring them and do what I do. This is simply just a different way of taxing your trades at this point and has nothing else to do with the current situation or the future.

For Gensler all tokens are Security including Ethereum if he has his way. The only Crypto that is not Security in his opinion is BTC. I will not worry about this IMO, most of these projects invariably end up settling with them out of court. I believe the $XRP case is more significant now than before, if the Ripple team wins its case against SEC that would be a major win for most Crypto tokens. I understand the Ripple team's argument that why Ethereum is not classified as Security and Ripple happens to be.

The SEC has previously deemed crypto assets to be securities, as was the case with the FTT tokens, and currently, the Algo token is one of the six tokens mentioned by others. Bittrex is the subject of a lawsuit that has an impact on several tokens connected to the exchange. As a result, it would be wiser to monitor developments and, if necessary, remove assets in accordance with SEC standards before it is too late.

There is no reason to panic as according to the SEC almost all coins are securities except for bitcoin, now some criticize the SEC for this, and while they do deserve a lot of criticism for a lot of things, in this particular case I think they are right, altcoins at the end of the day have people behind them hiding behind all kind of legal entities, so buying their coin is a form of investment on their company whether those people like to accept it or not, bitcoin is completely different which is why despite the strict guidelines of the SEC it receives a different treatment.

Well this isn't just about Algorand, they just got in the middle of Bittrex lawsuit. Algorand was one of the 6 coins, others being: OMG, DASH,TKN,Naga And IHT, and looks like more is coming to that list.

I would like to know the true reason for SEC's decision for this as all i can think of is if the devs of these coins had some illegal marketing tactic that focuses on price growth.
Now all they accomplished was to make Bittrex leave United States. They didn't really leave any alternatives.

https://twitter.com/richiela/status/1641879643497308161/photo/1

Expect FUD and Panic, try to exit early as much as possible and avoid further loses.
This accusation of SEC will take further as they continue to attack crypto. Are they suing the project developer already or this is their first warning to the public? Well, what we can expect from them maybe this can be the same issue with XRP and other projects being sued by SEC. Not fully familiar about the project but if there’s a SEC issue, I’m out for this.

I don't even care anymore about it. So much news related to SEC accused so many projects like security. The thing that is actually needed by SEC is to see the project paid fine to the US regulators. I take the lesson from XRP. XRP can leave the problem easily by paying fines but since XRP wanna try to prove that it's not security and it still continues the fight against SEC in court. SEC charges everything rigth now. The accusation toward justin sun has not ended yet but SEC already started to start another case.

He has called every cryptocurrency except BTC a security before, so ALGO is not the only one. They have called DASH and a few other projects securities too in their lawsuit against bittrex.

The thing that makes ALGO special is that this guy used to be a fan of ALGO and introduce it as a high tech blockchain before:

https://twitter.com/Leerzeit/status/1459943962647711745

Everything about this guy stinks horribly...

Gensler is likely involved in insider trading. It was said in the hearing that personally promoted this Algorand. He was really grilled n the hearing and couldn't answer a simple question as to which is the basis for treating a crypto a security or a commodity.

They were already suspecting why regulation was yet not finalized after 12 years of them having watching over crypto markets. I suspect they are waiting for the CBDC before they will really do something.

Algo is based on conversion mechanism where decentralised and traditional currencies can be converted amongst each other. This means it plays huge role in the exchanging of two different type of assets and could give rise to Money laundering as well. Though it is not any basis to think that it’s a security but since it’s involved in the financial system directly it has to be considered that way.

Anyways, if they consider it security then it could get proper regulatory framework. More adoption in the trading system under traditional finances. It’s gonna skyrocket the project with SEC security.

I think it's a job of SEC to go after Algorand. I have no doubt Algorand deserves a status of the security.

The answer to this question depends on many factors, and each investor can have his own opinion. However, if the SEC has designated Algorand a security, it means that they consider the token to be an investment contract and subject to regulation under US securities laws. This may affect the future development of the project, as it may be limited in how it can be used and which markets can trade it.
In any case, this may cause uncertainty in the market, and some investors may decide to sell their tokens to avoid risks. However, other investors may decide to continue holding their tokens as they believe in the project and its potential. It is important to remember that investments in cryptocurrencies are always associated with risks, and each investor must make his own decision based on his knowledge and experience.

At this stage I think the SEC is not fit for purpose. They are protecting nobody except the $ & big banks interests. How do they protect retail investors, by denying them access to life changing investment opportunities.

The SEC needs disbanding & some kind of other regulatory committee needs to be appointed, people who are in the 21st century, not the 1800’s. There needs to be scope for new technology otherwise the $ will weaken as innovation & adoption of new tech goes abroad.

Ignore the politics. Cause SEC always like to attack any projects on crypto. They always find a way to find flaws on a lot of project and Im thunking they just wanted to probably ask for penalty or any sort of backdoor deals to have some funds.

The news on CZ and Binance seems to die down already means probably something have been taken care off. Anything related to politics might really push this down to a lot of issues.

I'm not surprised though, SEC has been on the offensive lately and even after Coinbase and other exchanges.

It's that they are stepping it right now and it looks like they are hiding on the notion that they want to protect their consumers. Nevertheless, not the first time that we will hear this kind of statement from them, the question is who is next?

As far as holding Algorand, hard to say right now, but it's better if the OP can wait a bit before deciding to sell it off.

Algorand is falling today as expected but will just hold for now.

If we go back down to the December low then I will buy more.

I think they will be ok , just needs to get through this period.

That's right buddy. You shouldn't panic because even me I do believe that Algorand is one of those great projects. The fall can only be temporary and it's due to the panic of some weak Algorand investors after hearing this news but they will regret it later on and will try to go back especially when they see that the price of Algorand is increasing again.

Even if we are not in December where the price at its lowest, you can still do a DCA if you believe on the future potential of this project, the same with what you are doing with your Bitcoin and other top coin investments. Waiting for the bottom can only be a waste of time as it may not happen again.

You have made the right decision, but my advice is to keep an eye on developments that continue to occur, it's better for us to admit a small loss than to bear a big loss.

Gensler was shilling Algorand when it was $100 and it is now $5. He should go to prison for shilling an unregistered security that he listed as an unregistered security by his own logic.

I think may be, While this news may have implications for how Algorand is sold and traded, I think it is important here to consider the reasons underlying this classification and the potential long-term impact on the project. Regarding the Classification of tokens, the SEC as a security is based on a number of factors, including how the tokens are sold and marketed to investors. I think this Classification could have implications for how tokens are traded and sold, and may require additional regulatory compliance measures.

SEC Chair Gary Gensler recently referred to Algorand's coin ALGO as a security, despite having praised it in the past. This has caused controversy and led to a lawsuit against crypto exchange Bittrex. Some have criticized Gensler's comments and called for his removal from the SEC

While true at the same time we know that the laws are not applied fairly, he is someone powerful and as such even if anyone can see that what he did was wrong I doubt he will ever face consequences for his actions, which shows once again how ridiculous are the regulations of the governments as they want everyone to follow the rules, but they give all kind of excuses when it comes the time for them to abide by the very same rules.

The recent news about the SEC's claim that Algorand may be a security is certainly cause for concern among investors, as it raises questions about the regulatory environment and potential legal risks associated with holding the token. However, it's important to approach this news with caution and avoid making impulsive decisions based on fear or panic.
While the SEC's claim is certainly significant, it's worth noting that the situation is still developing and there are many unknowns at this time. It's possible that the claim could be resolved in Algorand's favor, or that it could have a relatively minor impact on the token's value and growth potential.

SEC basically considers everything that has a "owner" that sells these as a security. Meaning xrp is a security, algo is a security and there are plenty tokens that is security that they just didn't bother checking but 90% of token world is a security. Why do they consider such a thing? Because if there is a project dev at the top that sold you these coins or tokens, that is instantly security, that is what security means.

Bitcoin is not like that for example, nobody made bitcoin and sold it to you, well miners do but not created the idea of bitcoin, just mined it. Same goes for eth, or ltc, for example the biggest misunderstanding is that BNB is also a security, but not directly just yet. So all in all, a correct decision by SEC.

The SEC classification of Algo as a security could potentially have significant implications for the project and its investors. However, it is important to note that this is not a final determination and Algo has the opportunity to present its case to the SEC. It is difficult to predict how the market will react to this news, but it is not uncommon for cryptocurrencies to experience price fluctuations in response to regulatory developments. It is always wise to exercise caution and do your own research before making any investment decisions.

The SEC labeling Algorand as a security doesn't necessarily mean it's a negative thing, but it does mean that it will be subject to more regulatory scrutiny. It's important for projects to ensure they are compliant with securities laws to avoid potential legal consequences.

This is a good and simple explanation, when it comes to bitcoin there was never a presale or any kind of ico or its many different flavors, Satoshi created bitcoin and then he let people to participate if they wanted or not, and while there are some estimates that give Satoshi a huge number of coins, those were not kept by himself or anything like that, he got those coins when on the early days he was the only one securing the network and as such under the rules of bitcoin he is the legitimate owner of those coins.

I am wondering if the SEC is abusing their power too much, with this market a lot of names have gotten into the SEC controversy. And more and more I see the peculiarity of crypto, some regulations can make it difficult for new businesses and projects to access capital and develop, and users cannot use services and products. crypto products they want. Besides, this can also lead to underground activities and non-compliance with regulations, leading to instability in the market and also for the stock market. Therefore, the SEC needs to carefully consider its decision and exercise reasonable supervision, ensuring that the cryptocurrency market develops in a sustainable manner and is not negatively impacted.

It is a matter of time before the SEC takes a decision on this matter. They don't want to be in a position to do anything at all. They are going to look at the market and decide to make a decision based on what they see as the best. 
 
In the long run, they will have to find a way to protect their assets from being scammed. That is the most important thing to do right now.

Update - I continue to DCA into Algorand as 13p is a fantastic price right now.

Got to ignore the FUD and as Warren Buffet says - be greedy when others are fearful.

Fantastic price as in lowest in 3 years and near ATL. Yeah, i suppose it is if you want to get it as much as you can. I have nothing against DCA as a tactic and i am using it too, but it's harder to understand with an assets that i can't see having any future like personally with ALGO, but i have been wrong before.

But what i see in algo charts is that it can go lower, and since it has such a high marketcap it can go significally lower. So hopefully you have money left in 3 years to buy more if it keeps just dropping. Or at least money left to diversify to other alts as well.

Good luck and may you be prosperous and prove me wrong.

I have other alts I am invested in. I am not going heavy into Algo as I agree it can go lower , especially if we see another crash sometime this year.

I am just going to continue DCA and not be put off by the FUD.

unfortunately because the SEC has power and direct influence over products in the crypto space, but more and more I only see them abusing their power to press charges. Why must it be at times like the present to come to that conclusion, there are many other coins that have also encountered controversies related to the SEC.

and now I feel that either the projects need to do a lot of legal research outside the US to avoid such situations, or they will just prove and sue against what the SEC is doing caused to the market.