SEC Declares Algorand a Security, Gensler Gets Rekt for Previously Shilling It

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The Securities and Exchange Commission (SEC) has found itself in yet another crypto controversy.

In the most recent chapter of the SEC's crypto battle, the agency has classified six tokens as cryptocurrencies: OMG Network (OMG), Dash (DASH), Monolith (TKN), Naga (NGC), Real Estate Protocol (IHT), and Algorand (ALGO).

Its decision comes amid its lawsuit against crypto exchange Bittrex, which the SEC claims failed to register as an exchange or clearing agency. For the accusation to carry weight legally, at least one of the tokens listed on Bittrex needed to be a security.

Read more: Crypto Exchange Bittrex Operated Without Registration: US SEC

ALGO is the largest token on the list in terms of market cap, with a total value of around $1.6 billion.

Algorand itself has faced pushback from authorities recently. The blockchain firm had attempted to recover its 53.5 million USDC from the now-defunct 3AC. The firm argued that the USDC is equal to $53.5 million as UDSC is pegged to the US dollar.

Read more: Is Crypto Actually Money? Singapore Judge Says No

However, a Singapore judge concluded that as cryptocurrency is "not money," indebted obligations for crypto are not the same as fiat.

GG Gensler

Following the SEC's case on Monday, Crypto Twitter was quick to unearth footage of SEC Chair Gary Gensler previously promoting Algorand, describing the network as "great technology" that could support other tech firms such as Uber.

"Gary Gensler was SHILLING $ALGO and now he’s trying to call it a security," wrote one crypto tweeter. "This dude is all over the place, and he’s gotta go"

"Did Gary shill $ALGO and now calling it an unregistered security? Is he going to fine himself? 1+1 = 69," another wrote.

Separately, Gensler is set to testify before the House Financial Services Committee today over his agency's approach to digital assets.

"This will be our first oversight hearing of the SEC, this will be about his rulemaking and his approach to digital assets," Representative Patrick McHenry said in an interview.

Read more: SEC Chair Gary Gensler to Testify Over Crypto Asset Approach

The SEC has been tightening its grip on the crypto industry, taking on the likes of SushiSwap, Coinbase, Ethereum, Do Kwon, and Justin Sun, and even battling the CFTC over crypto-related issues.

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