The Cardano Foundation has expressed its disagreement with the SEC’s classification of Cardano (ADA) as a security.
The CEO of the Cardano Foundation, Frederik Gregaard, emphasized the need for regulatory clarity and expressed the organization’s commitment to engaging with regulators and policymakers.
The SEC’s stance on classifying cryptocurrencies as securities, excluding Bitcoin, has been a contentious issue, as seen in the ongoing legal battle between the SEC and Ripple.
Cardano Foundation Disagrees with ADA Security Classification: The CEO of the Cardano Foundation, Frederik Gregaard, has voiced his disagreement with the SEC’s recent classification of Cardano (ADA) as a security in the lawsuit against Binance.
Gregaard highlights the importance of regulatory clarity and expresses the foundation’s commitment to engaging with regulators and policymakers to achieve legal certainty on the matter.
SEC’s Broad View on Crypto Assets as Securities: SEC Chair Gary Gensler has repeatedly expressed his belief that most crypto assets are securities, except for Bitcoin.
According to the SEC’s perspective, crypto assets represent investment contracts and should be registered with the agency.
This viewpoint has been a point of contention between the SEC and blockchain company Ripple, which is currently facing legal action over the sale of its XRP token.
Lawsuits Against Binance and Coinbase: In its recent lawsuits against Binance and Coinbase, the SEC alleges that these exchanges offered digital assets, including Cardano, without proper registration as securities.
The agency specifically named Cardano, Solana, Polygon, and Binance Coin among others. Notably, the SEC did not mention Ethereum, despite previous hints from Gensler that it might be considered a security.
ADA Price Performance: At the time of writing, the ADA token was trading at $0.34, showing a 4.21% decrease in the day’s trading and a 9.49% decline over the previous week.
Over the past month, ADA has experienced a 7.35% loss in value. It’s important to note that cryptocurrency prices are highly volatile and subject to market fluctuations.