The U.S. Securities and Exchange Commission (SEC) has said it has never explicitly called tokens securities. This is contained in a note accompanying a lawsuit against cryptocurrency exchange Binance.
The document explains that the term “crypto asset securities” does not refer to the token itself, but to the set of contracts, agreements, and expectations associated with its use. The SEC noted that this is just a shorthand designation.
Coinbase General Counsel Paul Grewal recalled that the SEC used the term “digital security” in relation to the XRP token in a lawsuit against Ripple Labs.
Jake Chervinsky of the Variant Fund added that he was shocked by what was happening and called this situation an extreme form of manipulation.
