How Does the Distinction Affect the Listing of the Token on Centralized Crypto Exchanges?

Centralized exchanges are hesitant to list tokens that could be classified as unregistered securities due to the high regulatory risk. They generally prefer utility tokens or tokens that have achieved sufficient decentralization.

Security tokens must be listed on specialized, regulated security token exchanges. The utility/security distinction therefore determines the available market access, significantly impacting liquidity and trading volume.

What Is the Concept of “Early Exercise” and Why Is It Usually Avoided?
How Does an Exchange Determine the Initial Listing Price of an IEO Token?
What Is the Primary Distinction between a Utility Token and a Security Token?
What Is the Legal Risk of Secondary Market Trading of a Token Initially Sold as a Utility?
What Are the Implications of the SEC’s Stance on Unregistered Securities for Crypto Derivatives?
What Is the Regulatory Status of Cross-Border Trading of Synthetic Assets That Reference US-listed Securities?
How Does the Listing of a New Contract on a DCM Get Approved by the CFTC?
How Are Security Tokens Regulated?