Grayscale Inves
from web site
Grayscale Investments announced that the SEC considers Filecoin to be a security, according to a statement. The SEC staff expressed their view to Grayscale, stating that Filecoin meets the definition of a security under federal securities laws and may qualify as an investment company. As a result, the SEC requested Grayscale to withdraw its registration statement for Grayscale Filecoin Trust shares. However, Grayscale disagreed with the SEC's position and plans to respond to the SEC staff. The future outcomes and potential actions, such as seeking accommodations or dissolving the trust, are uncertain.
Following this announcement, Filecoin's value dropped rapidly from around $4.59 to approximately $4.44 within twenty minutes. However, by 5 p.m. ET on Wednesdays, Filecoin's value stabilized at around $4.54, according to CoinMarketCap.
Filecoin is a cryptocurrency used for decentralized peer-to-peer file storage, and FIL tokens are used for transactions. The SEC's classification of Filecoin as a security adds it to the growing list of cryptocurrencies receiving this designation. It is noteworthy that SEC Chair Gary Gensler has consistently expressed the belief that most cryptocurrencies are securities. In a previous enforcement action against Bittrex, the SEC identified other cryptocurrencies, including OMG, Dash, ALGO, Monolith (TKN), Naga (NGC), and the IHT Real Estate Protocol (IHT), as unregistered securities offerings.
