---
id: "claim-altcoins-are-equities"
type: "claim"
source_timestamps: ["00:19:44", "00:19:57"]
tags: ["cryptocurrency", "regulation", "altcoins"]
related: ["concept-protocol-vs-company", "question-altcoin-regulation"]
confidence: "high"
testable: false
speakers: ["Mark Moss"]
sources: ["markmoss"]
sourceVaultSlug: "mark-moss-debasement-trade-bitcoin-2026Jun25"
originDay: 5
---
# The vast majority of altcoins are unregistered private companies / equities

## Claim

> Out of the **~19.5 million cryptocurrencies** in existence, almost all of them (excluding Bitcoin) function as private companies rather than neutral protocols. They are **digital equities** or **unregistered securities**.

## Reasoning

See parent concept [[concept-protocol-vs-company]]. Moss's specific criteria:

- **Centralized leadership teams** (CEOs, foundations, dev shops).
- **Marketing budgets** and roadmaps.
- **Token issuance as a capital-raising mechanism** — functionally identical to issuing equity in a private company.
- Token holders rely on the **team's execution** for the asset to appreciate, satisfying part of the Howey Test.

Consequently, Moss treats them as carrying the same execution and counterparty risks as traditional startups — not as pristine, decentralized money.

## Confidence: HIGH (Moss's own)

**Testability:** NO — 'most are equities' is a categorical judgment that depends on regulatory definitions.

## Validation

- The SEC has explicitly alleged that numerous tokens (XRP, SOL, ADA, MATIC, etc.) are investment contracts and securities.
- The CFTC treats Bitcoin as a commodity; the SEC has not claimed Bitcoin as a security.
- Many academic legal scholars echo the view that the vast majority of altcoins satisfy the Howey Test.

## Nuance

- **Ethereum** and other major networks argue they are sufficiently decentralized to qualify as commodities — see [[question-altcoin-regulation]].
- The '19.5 million' figure overstates the realistic universe of meaningfully traded tokens.
- International frameworks (EU MiCA, UK, Singapore) use more nuanced typologies (payment, utility, asset-referenced) rather than a binary 'equity vs. protocol' framing.
- A minority of cryptographers and economists argue certain altcoins provide genuine non-equity utility (decentralized infrastructure, governance).


## Related across days
- [[concept-protocol-vs-company]]
- [[concept-meme-coins-as-regulatory-arbitrage]]
- [[claim-meme-coins-zero-value]]