SEC Labels Filecoin as a Security in Response to Grayscale Application

The U.S. Securities and Exchange Commission has reportedly labeled Filecoin's FIL token as a security, according to a Wednesday announcement from Grayscale Investments.

Major crypto investment firm Grayscale had applied to the SEC to launch a Filecoin Trust product which would give investors indirect exposure to FIL. (Disclosure: Protocol Labs, the company behind Filecoin, is one of Decrypt’s 22 investors.)

But the SEC told Grayscale in a letter yesterday that FIL is a security and therefore the application must be withdrawn, according to the firm.

This story is a breaking story and will be updated.