Majority of foundation backed coins are unregistered securities and it's gonna turn out well for them.

What is a security? It's decided by the howey's rule that was determined by the Supreme Court of USA .

​

It has 4 components:

​

*An investment contract / security is:

​

1. An investment of money

​

1. In a common enterprise

​

1. With the expectation of profit

​

1. To be derived from the efforts of others

​

Now Pick your favourite altcoin and test it:

​

Did you invest money in it with an expectation of profit that would be based on actions of others in this case the "foundations" especially the ones with ICO's and who keep a lot of coins for themselves.

​

​

An important point to consider is that the more decentralised a coin is better are it's chances of not getting classified as a security as the point of "common enterprise" gets nullified with decentralisation.

​

You will get your answer.

​

Ripple has one exception, It claims to be primarily a currency and currencies are not securities so maybe they escape , time will tell but for others it's gonna be a lot of doom and gloom when sec does use some brain and go after the easy pickings..