Centralized exchanges are hesitant to list legacy cryptocurrency tokens without explicit immunity from the US Securities and Exchange Commission (SEC). This is due to regulatory uncertainty and the risk of non-compliance. According to a report by CoinDesk, Vault12 raised $17.45 million in 2018 by selling its VGT token, but it has never been listed on a centralized exchange. The company claims to have met or dropped every promise made to investors, yet it remains unlisted.
This article is Bitcoincryptos' summary and analysis of reporting originally published by CoinDesk. Read the full original report at the link above.
Legacy tokens are those that were created before the SEC's guidance on token classification in 2019. The SEC has not provided clear guidelines on how to handle these tokens, leading to a lack of clarity for exchanges. Exchanges want to avoid the risk of being penalized for listing a token that could be deemed a security by the SEC.
