Cardano Developer: ADA Is Not a Security

Input Output Global (IOG), the company behind Cardano, has responded to the U.S. Securities and Exchange Commission (SEC) claim that ADA is a security.

Cardano Developer: ADA Is Not a Security

As reported by Coin68, the SEC's regulatory crackdown is reaching its peak. Major exchanges Binance and Coinbase have been accused of operating unregistered securities trades, with the SEC declaring 52 tokens as securities.

List of 52 Tokens Declared as Securities by the SEC

The SEC's unilateral declarations and lack of clear classification criteria have outraged the crypto community. Founding organizations of the targeted tokens have been pushing back against the SEC.

After the Solana Foundation asserted that SOL is not a security, the team behind Cardano and its token ADA has made a similar argument.

According to a statement from Input Output Global (IOG), the company developing Cardano, the SEC's arguments are "inaccurate."

"Under all circumstances, ADA is not a security under U.S. securities laws. ADA has never been a security."

IOG also criticized U.S. officials for their lack of understanding of the crypto space:

"Understanding how decentralized blockchain operates is a fundamental requirement for lawmakers to create responsible legal frameworks."

Ultimately, IOG concluded that the SEC’s unilateral declarations will not impact the project's operations.

Previously, Cardano founder Charles Hoskinson expressed support for Binance but emphasized that such conflicts are part of the industry's growth process.

Over the past 24 hours, ADA's price has dropped approximately 4%, trading around $0.32.

1h Chart of ADA/USDT on Binance at 04:30 PM on 09/06/2023