September 21, 2023

Cardano Developer Rejects ADA Classification as a Security

Cardano Developer Rejects ADA Classification as a Security

Copy trading is already available on Toobit

IOG said the SEC allegations would have no effect on future activities of the organization

Input Output Global (IOG), which developedThe Cardano network has refuted statements by the US Securities and Exchange Commission (SEC) that the ADA token should be considered a security. The IOG release states that, in accordance with US law, ADA is not a security "‎under no circumstances, and never has been." This is reported by the publication CoinDesk.

IOG stated that the SEC lawsuits filed earlier againstCrypto exchanges Binance and Coinbase, which have listed ADA as a security, contain “numerous factual inaccuracies.” At the same time, accusations against ADA will not have any impact on the company's activities.

“Understanding how decentralized blockchains work is a fundamental ingredient for creating responsible legislation,” IOG added.

The company believes that regulation through enforcement action does not provide the necessary clarity and certainty that both the blockchain industry and consumers deserve.

A similar statement was made by representatives of the non-profit organization Solana Foundation, who stated that they "strongly believe that SOL is not a security"‎.

What events preceded?On June 6, the SEC filed a lawsuit against Coinbase for offering unregistered securities. The SEC has classified several PoS tokens offered by the exchange as securities, including SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO. On June 5, a similar lawsuit was filed against Binance.

About Cardano.The smart contract-enabled blockchain platform was created by Input Output Hong Kong (IOHK) and Hoskinson in 2017. The ADA token makes it possible to participate in the network. Against the backdrop of filing a lawsuit by the SEC, the price of the ADA token decreased by 2.31% in a day and by 14.48% in a week. As of June 9, 17:20 Moscow time, the asset is traded on the Toobit crypto exchange at $0.3195.

At the time of publication of the article, the ADA cryptocurrency is trading at 0.2662 on the Toobit exchange.