Flow

Algorand

<p>The SEC appears determined to take drastic measures in the crypto sector. After officially targeting two major crypto exchanges, it is now intervening in crypto. The classification of certain cryptos as unregistered securities has triggered a price drop for many altcoins. Among them, Algorand and Flow reached their lowest levels over the weekend.</p><div class="thumbnail post-cover-image"><img src="https://www.cointribune.com/app/uploads/2023/06/bear-market.jpg" srcset="https://www.cointribune.com/app/uploads/2023/06/bear-market.jpg 658w, https://www.cointribune.com/app/uploads/2023/06/bear-market-300x180.jpg 300w" sizes="(max-width: 658px) 100vw, 658px" class="post-cover-image--img" alt="Algorand Flow"></div><div class="my-4"></div>



<h2 id="h-regulatory-status-of-numerous-altcoins-questioned">Regulatory status of numerous altcoins questioned</h2>



<p>The SEC has labeled numerous <a href="https://www.cointribune.com/vers-une-chute-des-altcoins-lanalyse-inquietante-de-benjamin-cowen/" target="_blank" rel="noreferrer noopener">altcoins</a> as unregistered securities, calling into question their regulatory status. This includes Solana, Polygon, Cardano, Algorand, Flow, and many others. They have experienced significant declines following the SEC’s actions. However, the prices of Algorand (ALGO) and Flow (FLOW) have been the most impacted. They have dropped over 60% from their respective peaks in February and are down 28% in the past seven days.</p><div class="my-4"><div class="ads ">
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<p>The SEC initially claimed that ALGO was a security when it filed a lawsuit against the Bittrex exchange in April. Algorand Foundation opposed this classification, <a href="https://decrypt.co/144119/algorand-flow-all-time-lows-sec-lawsuits" target="_blank" rel="noreferrer noopener">emphasizing</a> the need for clear regulatory guidelines to advance the crypto industry. The SEC also deemed Flow a security, focusing on Dapper Labs’ history.</p>



<h2 id="sec-cracks-down-on-binance-and-coinbase">SEC cracks down on Binance and Coinbase</h2>



<p>The classification given to Algorand and Flow follows the SEC’s lawsuits against the exchanges Binance and Coinbase. In the lawsuits against <a href="https://www.cointribune.com/binance-vs-sec-lexchange-contre-attaque-depots-en-dollars-suspendus/" target="_blank" rel="noreferrer noopener">Binance</a> and Bittrex, the SEC states that the initial coin offering (ICO) for ALGO was an unregistered securities offering. The agency explains that there was an investment of money in a common enterprise with the expectation of profits derived from the efforts of others.</p>



<p>Regarding Flow, the SEC deems it a security due to Dapper Labs, a Canadian company that launched the Flow blockchain and several NFT projects. In its legal action against Coinbase, the SEC highlighted the connection between <a href="https://www.cointribune.com/cours-crypto/flow-flow/" target="_blank" rel="noreferrer noopener">FLOW</a> and Dapper Labs in the development of the Flow blockchain network.</p>

SEC shakes up the crypto market: Algorand and Flow Tumble, altcoins in danger?

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