- The SEC made several claims about Cardano in its case against Binance.
- IOHK and Cardano Foundation have refuted the SEC’s allegations.
- Cardano Founder Charles Hoksinson also addresses the accusations.
The recent regulatory onslaught by the United States Securities and Exchange Commission (SEC) on the country’s two major crypto exchanges has sent shockwaves through the industry. The regulator’s aggressive approach has targeted numerous tokens, including Cardano (ADA), as unregistered securities. However, it has also sparked unity in the crypto sphere.
Amidst this chaos, many prominent figures, such as Cardano Founder Charles Hoskinson, have led a united front against the SEC, striving to bring clarity to the situation and ensure a fair and balanced regulatory infrastructure.
Clearing the Air, Again
In the SEC’s official case filing against Binance and Coinbase, Cardano (ADA) and other tokens were accused of being unregistered securities. The regulator alleged Cardano’s three founding entities, IOHK, the Cardano Foundation, and Emurgo, owned the protocol, implying the Proof-of-Stake (POS) chain lacked decentralization.
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The SEC also argued that Cardano sold tokens to justify its ‘unregistered security’ classification, neglecting important facts and figures.
While Cardano’s founding entities IOHK and Cardano Foundation, has publicly refuted the SEC’s claims, Charles Hoksinson has personally addressed the allegations again. Previously, in response to the SEC’s announcement, Hoskinson implied the regulator had a hidden agenda of integrating CBDCs called chokepoint 2.0. He called upon his followers and the crypto community to unite and fight.
However, given Cardano’s (ADA) 44% price decline since the SEC made its claims on June 6, Hoskinson had another go at addressing the allegations. The founder argued that the SEC overlooked that Cardano’s ICO took place in Japan, where it sold redeemable vouchers instead of ADA in exchange for Yen or Bitcoin. He added they marketed Cardano in Japan, and no one from the United States participated.
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While it’s uncertain if the SEC will heed Charles Hoskinson’s comments, Cardano (ADA) is slowly recovering from its shock after touching this year’s low of $0.214 on June 10. At press time, Cardano (ADA) sat at $0.28, noting a 30% increase from its year-to-date low.
On the Flipside
- After facing similar regulatory challenges to XRP, Charles Hoksinson shared an interest in patching things with the XRP community.
- The SEC’s case against Binance and Coinbase sparked a wave of liquidations throughout the market, amounting to $104 million.
- Speaking of responses, Solana also refuted the SEC’s classification of SOL as a security. However, the company received backlash from the community over its supposed weak response.
Why This Matters
While it remains unclear why the SEC has neglected crucial information in its filing, the project’s representatives need to clear FUD and allegations actively to protect its integrity. Charles Hoskinson is playing an important role in alleviating the fear surrounding ADA by addressing the SEC’s claims.
Charles Hoskinson offers peace:
Cardano’s Charles Hoskinson Extends Olive Branch to the XRP Community
Binance could face indictment:
Binance Will Face Criminal Indictment, Former SEC Chief Warns
FAQs
The definition of what qualifies a digital asset security remains unclear in the U.S. The U.S. SEC recently claimed in a lawsuit against Binance that Cardano’s ADA is an unregistered security. Cardano founder Charles Hoskinson has disputed this claim.
Binance is an international exchange not subject to U.S. laws. As such, it is under no pressure to cease support for Cardano’s ADA. The asset remains available for trading on the platform at the time of writing.
Due to the SEC’s claim that ADA is an unregistered security, some U.S. crypto trading platforms have delisted ADA. These platforms include eToro and Robinhood.
Following the SEC lawsuit against Binance, U.S. crypto exchanges have a tough choice between delisting assets like ADA and potentially facing regulatory enforcement action. Many who wish to remain compliant will likely go with the first option.
