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The SEC said in a statement Wednesday that online platforms trading digital assets that are considered securities need to register with the agency.
Bitcoin quickly fell 10 percent to below $10,000 amid the concerns about increased regulation.
"The SEC continues to draw a line in the sand between securities and non-securities but without going so far as to name names," said Spencer Bogart, partner at Blockchain Capital. But "of all crypto assets, bitcoin seems least likely to be deemed a security by a long shot."