CEXes Avoid Listing Older Crypto Tokens Amid SEC Uncertainty

Regulatory Uncertainty Keeps Tokens Off Exchanges

Centralized exchanges (CEXs) are increasingly reluctant to list crypto tokens issued in earlier fundraising rounds, even if those projects delivered on their stated objectives. This hesitancy stems from ongoing regulatory uncertainty surrounding the U.S. Securities and Exchange Commission (SEC) and its enforcement actions.

Vault12's VGT as a Case Study

Vault12, a project that raised $17.45 million through a VGT token sale in 2018, exemplifies the problem. The project claims to have met or abandoned all commitments made to investors. Despite this, VGT has never been available for trading on a major centralized exchange. The lack of listing isn’t a reflection of the project’s performance, but rather a risk assessment by potential exchange partners.

Demand for SEC Immunity

Exchanges are reportedly seeking explicit immunity from the SEC before listing such “legacy” tokens. This demand reflects the heightened scrutiny of the crypto industry and the potential legal ramifications of listing tokens that could be deemed securities without proper registration. Without clear guidance, CEXs are prioritizing legal safety over potential trading volume.

Implications for Older Projects

The situation poses a significant challenge for older crypto projects that relied on token sales for funding but haven’t been able to achieve widespread exchange access. It also highlights the critical importance of regulatory clarity in the digital asset space.

Source: CoinDesk