SEC Ramps Up Regulatory Action, Rules Filecoin's Token A Security

The Securities and Exchange Commission (SEC) announced on Wednesday that it considers Filecoin’s token (CRYPTO: FIL) a security.

What Happened: This decision comes after Grayscale Investments launched its Grayscale Filecoin Trust in March 2021, providing investors with indirect exposure to FIL. 

In a letter sent yesterday to Grayscale, the SEC stated that FIL “meets the definition of a security under the federal securities laws,” and demanded that the application be withdrawn.

Grayscale disagrees with the SEC’s decision and intends to respond promptly, stating that it does not believe that "FIL is a security under the federal securities laws."

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Why It Matters: The SEC’s decision widens its crackdown on the digital asset industry, with several crypto companies having been fined this year for selling “unregistered securities" including Kraken.

SEC Chairman Gary Gensler claims that while most digital assets are securities, he views Bitcoin (CRYPTO: BTC), the largest cryptocurrency by market cap, as an exception.

Price Action: At the time of writing, FIL was trading at $4.60, up 2.85% in the last 24 hours, according to Benzinga Pro.

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