The Securities and Exchange Commission (SEC) has classified these cryptocurrencies as securities in the lawsuit it filed against Binance and Coinbase on June 8. While this caused an initial sell-off, most have since recovered to pre-crash levels.

On June 8, the Securities and Exchange Commission launched lawsuits against cryptocurrency exchanges Binance and Coinbase. Charges against them range from simple failure to disclose information to serious regulatory violations. The crux of this lawsuit boils down to the Howey test, a legal framework that determines whether an investment is a “security.”

The full list of cryptocurrencies that are classified as securities is as follows:

• Cosmos (Atom)
• Binance coin (BNB)
• Binance USD (BUSD)
• COTI (COTI)
• Chili’s (CHZ)
• close (near)
• flow (flow)
• Internet computer (ICP)
• Voyager Token (VGX)
• dash (dash)
• Nexo (Nexo)
• Solana
• Cardano (ADA)
• polygon (matic)
• Filecoin (FIL)
• sand box (sand)
• Decentraland (MANA)
• Algorand (ALGO)
• Axie Infinity (AXS)

If these tokens are eventually classified as securities, they will be removed from US exchanges.

SEC Chairman Gary Gensler stated that “everything other than Bitcoin” can be described as a security. While Gensler is now an advocate of cracking down on cryptocurrencies, he was a more positive figure during his tenure in 2018 when he taught a blockchain course at MIT.

At the time, he said in a lecture: “Three-quarters of the market is non-securities. It’s just a commodity, a cash cryptocurrency.” Thus, his position now is a direct contrast to that of 2018.

However, not everyone in the financial community shares Mr. Gensler’s belief. He has recently come under fire from several lawmakers, who are introducing a bill that could replace him as chairman of the Securities and Exchange Commission.

Coins are pumping in spite of the SEC lawsuit

While the lawsuit triggered a sharp crash on June 8, the market has since recovered. Interestingly, some of the tokens named as securities command these fees.

Algorand (ALGO) has increased nearly 6% (red) since June 8, while Cosmos (ATOM), Filecoin (FIL), Axie Infinity (AXS), and Coti Network (COTI) have recovered almost all of their losses since the crash.

Algorand (ALGO) price is driving the fee

ALGO price has had a tough time since November 2021, dropping 97% in 567 days. During the week of the lawsuit (green icon), ALGO briefly fell below the March 202 low of $0.095. However, the price has since recovered impressively and is now trading at $0.13.

Moreover, the price is approaching the aforementioned long-term descending resistance line. If it is broken, it means that the previous correction has completed and a new upward trend has started. This could start a rally to the nearest resistance area at $0.41.

However, if the price is rejected at the resistance line again, a drop to the next nearest support area at $0.05 could ensue. This would amount to an all-time low price.

Cosmos (ATOM) attempts to restore the main level

Unlike ALGO, the price of ATOM is yet to come close to the lows of 2020. Instead, the price has fallen to a new yearly low but is well above even the lows of 2022.

During the week of the SEC lawsuit, ATOM briefly fell below the $8.50 horizontal support area. However, the price has since recovered, creating a long lower wick in the process (green symbol).

In addition, it recovered and validated the horizontal area as a support. If the current shutdown holds, it will be a critical bullish development as it indicates that the previous crash was not legitimate. In this case, ATOM price could rise to the next nearest resistance at $12.

On the other hand, if ATOM price reverses the trend and closes below $8.50, a sharp decline to $6 could ensue.

Filecoin (FIL) almost hits resistance

Similar to ATOM, FILE price has been falling below its descending resistance line since the beginning of February. Recently, the line caused a rejection at the beginning of June, which led to a significant drop (red symbol). This coincided with the lawsuit filed by the Securities and Exchange Commission.

However, in the same week of the crash, FIL created a very long lower wick, which was seen as a sign of buying pressure. This also validated the horizontal area of ​​$2.90 as support.

Currently, FIL is trying to break out of the resistance line. If successful, it could rise to the next resistance at $3.90.

On the other hand, if FIL price is rejected, it could drop to the $2.90 horizontal area again, validating it as support.

For the latest cryptocurrency market analysis from BeInCrypto, click here.