CRO, the native token of the Cronos blockchain, an open-source and interoperable platform based on Cosmos, a centralized crypto-asset exchange, is holding firm despite concerns from some community members that the US Securities and Exchange Commission (SEC), the primary regulator, could Securities in that country will soon target Crypto.com, a cryptocurrency exchange and blockchain developer.
The CRO stabilized despite concerns that the SEC might turn to Crypto.com
As of this writing on June 8, the CRO is commerce At $0.05889, stable in the last 24 hours against the US Dollar, Bitcoin and Ethereum.
Despite this, with average daily CRO trading volume at $9,098,498, it is down more than 25% in the last trading day.
The double-digit contraction in the past 24 hours comes less than 72 hours after the SEC filed a lawsuit against Binance, a dominant cryptocurrency exchange, alleging that it was facilitating the trading of unregistered securities and allowing Americans to illegally access the platform. The Securities and Exchange Commission has filed 13 counts against the exchange, led by Changpeng Zhao.
The regulator also sued Coinbase in New York federal court, alleging that a cryptocurrency exchange, like Binance, had listed and profited from trading unregistered securities.
The tokens claimed by the SEC are securities that include ADA, Cardano’s native currency; MANA, the token behind Decentraland; SAND, priming the ERC-20 token The SandBox; ALGO, the native currency of the Algorand Proof-of-Stake blockchain, and MATIC by Polygon.
stablecoin, BUSD; NEAR by the NEAR Protocol; CHZ by Chiliz, are some of the mentioned tokens which the SEC claims are unregistered securities.
However, there was no explicit mention of the CRO in either of the two lawsuits filed by the regulator against the two largest cryptocurrency exchanges.
At the same time, it should be male Crypto.com also allows the trading of most tokens that the SEC claims are unregistered securities.
What is common to all the symbols that are considered SEC colleges?
Within the Cronos blockchain, the CRO is used to pay gas fees. Also, since the platform uses a proof-of-stake consensus algorithm, users can participate in CROs and get rewards. Moreover, users can access Cronos’ decentralized finance (DeFi) ecosystem through CRO nodes.
In 2018, Crypto.com completed its Initial Coin Offering (ICO), raising over $26 million, which also saw the launch of the CRO token.
Observers have noted that of all the tokens the SEC claims to be securities, they have all conducted successful crowdfunding.
In addition, the projects accused of issuing the securities have also pledged to their communities that they will continue to improve the underlying protocol through continuous development.
With this said, some of their money was used for marketing needs.
Moreover, each of these teams has used social media channels and forums like Twitter, Discord, etc. to highlight the advantages of their respective protocols.
Determining whether a token qualifies as a utility, like Bitcoin, or an unregistered security is up to the judge. Until a ruling is issued, the exchange may take precautionary measures, including delisting the asset, to ensure compliance with applicable regulations.
Featured image from Canva, chart from TradingView