SEC Identifies SAND Token and Others as Securities in Crackdown on Crypto Industry

SEC Identifies SAND Token and Others as Securities in Crackdown on Crypto Industry

As part of a broader crackdown on the crypto industry, the United States Securities and Exchange Commission (SEC) has taken measures to identify certain tokens, including SAND, as securities. This comes in the wake of recent lawsuits against two major crypto exchanges, Binance and Coinbase.

The SEC’s increased enforcement efforts in the crypto space led to consecutive filings against Binance and Coinbase. Among the tokens identified as unregistered securities by the SEC this week, SAND from the Sandbox metaverse game stands out.

Sebastien Borget, co-founder and Chief Operating Officer of The Sandbox, responded to the allegations that SAND may have violated U.S. securities laws in light of the lawsuits against the exchanges. Borget stated that they do not necessarily agree with the SEC’s characterization of SAND as a security in the litigation.

While SAND has been named in this context, Borget clarified that The Sandbox team is not directly subject to litigation, and it has no impact on their day-to-day operations. The SEC’s complaints against Binance and Coinbase were filed on separate days, and each case has distinct claims.

Binance has been accused of operating without proper licenses as an exchange, broker, and clearing agency. Additionally, it allegedly offered and sold unregistered securities, allowed U.S. users on its international exchange, and provided access to its platform without verification.

In the case of Coinbase, the exchange is accused of running staking businesses that offer token holders profits resembling interest. These measures are part of a broader U.S. crackdown on the cryptocurrency industry, spearheaded by SEC Chair Gary Gensler.