Update
Centralized Exchanges Avoid Listing Legacy Crypto Tokens Without SEC Immunity
Centralized crypto exchanges are declining to list older, legacy-style tokens without explicit regulatory immunity from the US Securities and Exchange Commission (SEC). This cautious approach may drive traders to decentralized platforms, impacting market dynamics and regulatory strategies. The core issue is the US Securities and Exchange Commission's (SEC) Howey test, which determines whether an asset counts as a security. Legacy tokens are filtered based on their decentralization, utility, and other features to lower the odds of a securities classification. Projects with concentrated ownership or marketing that leans on price appreciation face extra scrutiny.