Should we watch Crypto.com’s CRO token despite SEC lawsuit fears?

CRO is the native token of Cronos blockchain, which is an open-source, interoperable, and Cosmos-based platform. Despite concerns from some members of the community that the United States Securities and Exchange Commission (SEC) may target Crypto.com, a centralized crypto asset exchange and the developer of the blockchain, CRO remains stable.

CRO Stabilizes Despite Fears The SEC Might Sue Crypto.com

As of June 8, CRO is trading at $0.05889 and has remained stable in the last 24 hours against the USD, Bitcoin, and Ethereum.

However, CRO’s average daily trading volumes have decreased by over 25% in the last trading day, with trading volumes at $9,098,498.

In the previous 24 hours, the SEC sued Binance, a dominant cryptocurrency exchange, alleging that it had facilitated the trading of unregistered securities and illegally allowed Americans to access the platform. The SEC filed 13 charges against the Changpeng Zhao-led exchange. In addition, the regulator also sued Coinbase, claiming that it had listed and profited from the trading of unregistered securities.

The SEC claims that tokens such as ADA, MANA, SAND, ALGO, and MATIC are securities. Stablecoin BUSD, NEAR by the NEAR Protocol, and CHZ by Chiliz are also mentioned as unregistered securities. Despite this, CRO was not mentioned in any of the lawsuits filed by the regulator against the two largest cryptocurrency exchanges.

It should be noted that Crypto.com allows the trading of most tokens that the SEC alleges are unregistered securities.

What’s Common in All Tokens The SEC Alleges Are Securities?

CRO is used within the Cronos blockchain to pay gas fees, and users can stake CRO and receive rewards because the platform uses a proof-of-stake consensus algorithm. Users can also access the decentralized finance (DeFi) ecosystem in Cronos by holding CRO.

Crypto.com completed its initial coin offering (ICO) in 2018, raising over $26 million, which also saw the launch of the CRO token.

Observers have noted that all the tokens the SEC claims are securities conducted successful crowdfundings. Additionally, the projects accused of issuing securities pledged to continue improving the underlying protocol via ongoing development, with some of their funds used for marketing. Furthermore, each of these teams used social media channels and forums like Twitter, Discord, and others to highlight the advantages of their respective protocols.

The determination of whether a token qualifies as a utility, such as Bitcoin, or an unregistered security rests with the judge. Until a ruling is made, exchanges may take precautionary measures, including delisting the asset, to ensure compliance with applicable regulations.

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