The U.S. Securities and Exchange Commission (SEC) recently said that many altcoins, including Algorand (ALGO), are in fact securities and claimed they were sold on an unregistered basis.
The response to this action came from the Algorand front.
Algorand (ALGO) Altcoin Foundation Responds to SEC's Claim
The official Twitter account of the Algorand Foundation said the following in its statement:
“We want to be clear: we believe that Algo tokens are not securities under US law. We welcome clear regulatory guidelines for the advancement and growth of the entire industry.
Our priority is to always act in the best interests of our community. We look forward to seeing what this dynamic community builds next in Algorand.”
In addition, Algorand altcoin CEO Staci Warden also issued a statement on the subject:
“The US SEC recently sued Bittrex for alleged securities law violations. The complaint alleged that Algo is an example of securities available for trading on Bittrex. We are not a party to this lawsuit and we do not intend to consider every single claim in the complaint.”
The development caused a sudden drop in the ALGO altcoin price. The SEC previously claimed that the Ripple (XRP) cryptocurrency is a security and argued that the sale of this token was unregistered. The lawsuit between Ripple and the SEC has been going on for a long time.
*Not investment advice.