Are Cryptocurrencies Considered Securities?

[Nomad]

The legal status of cryptocurrencies remains a hot debate in many countries, even though Bitcoin has lasted with us for 16 years. The US Securities and Exchange Commission once filed lawsuits against several crypto projects, arguing that these digital assets function as securities. By definition, a security is an investment people expect to profit from, crypto has the same function.

 

[Menaka]

Cryptocurrencies can be considered securities depending on their structure and usage. Regulatory bodies like the SEC assess whether a cryptocurrency meets the criteria of an investment contract. If so, it may be classified as a security, subjecting it to regulations.