SEC names Filecoin cryptocurrency a security

SEC names Filecoin cryptocurrency a security

Author: Robert Strickland (crypto-journalist)

SEC names Filecoin cryptocurrency a security
The U.S. Securities and Exchange Commission (SEC) has called the cryptocurrency Filecoin a security
The regulator denied Grayscale's registration of Filecoin Trust shares

The Securities and Exchange Commission (SEC) said that the cryptocurrency Filcoin (FIL) falls under the definition of security. The announcement was made by management company Grayscale Investments, which the regulator refused to register shares of the Filecoin Trust.

Filecoin is a decentralized storage platform created by Protocol Labs in 2014. The ecosystem uses the Filecoin native cryptocurrency of the same name for payments. According to CoinGecko, the asset has a market capitalization of $1.9 billion with a daily trading volume of $160 million.

Grayscale Investments, which manages trusts for Bitcoin, Ethereum, and other cryptocurrencies, applied for registration of Filecoin Trust shares under the Securities Act on April 14.

If the company fails to convince the SEC staff, Grayscale might consider re-registering the trust under the Investment Company Act or shutting it down.

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