The SEC's recent statement on the value of the cryptocurrency market has raised questions about the value of tech billionaire Elon Musk and Dogecoin co-creator Billy Markus.
The SEC said in a court motion filed Monday against the Cryptocurrency Exchange platform Coinbase that digital assets have no inherent value since they cannot generate profits.
whereas a crypto token 'won't generate any profit absent an ecosystem that drives demand, the SEC said.
The statement of the major Wall Street regulator about cryptocurrency was not received well in the crypto world, particularly by the Dogecoin co-creator Markus, who uses the handle Shibetoshi Nakamoto on X.
The Federal Trade Commission asked the judge to reject Coinbase's argument that Crypto trading does not constitute an investment contract and justified its position on the matter by highlighting federal securities laws, which it said should be flexibly interpreted using the Howey Test.
The Supreme Court established the Howey Test to determine what qualifies as an investment contract, imposing the asset to U.S. securities laws.
The total circulating supply of DoGE is 141.35 billion, with its value down 2.05% at an $8.36 billion market cap.