Cardano Foundation Asserts ADA’s Non-Security Status, Vigorously Defends Position to SEC Chair Gary Gensler - ELEVENEWS
The Securities and Exchange Commission has claimed in a lawsuit against Binance, a cryptocurrency exchange, that certain well-known cryptocurrencies such as Solana, BNB, and the native tokens for Polygon and...
The Securities and Exchange Commission has claimed in a lawsuit against Binance, a cryptocurrency exchange, that certain well-known cryptocurrencies such as Solana, BNB, and the native tokens for Polygon and Cardano are considered securities.
Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and their founder, Changpeng Zhao, with a variety of securities law violations.https://t.co/H1wgGgR5ir pic.twitter.com/IWTb7Et86H
— U.S. Securities and Exchange Commission (@SECGov) June 5, 2023
Binance and its CEO Changpeng Zhao faced 13 charges, alleging various misconducts such as mixing customers’ funds and attempting to circumvent U.S. securities regulations through “web deceptions” to determine business partnerships with the company.
This represents a noteworthy advancement for the cryptocurrency sector since when the SEC designates a particular token as a security, brokers may become hesitant to provide it, leading to reduced liquidity and potentially causing a decline in value.
According to Gary Gensler, the SEC chair, the agency considers “everything other than Bitcoin” as security within its jurisdiction. It is worth noting that the crypto data site CoinMarketCap lists approximately 25,500 cryptocurrencies.
Cardano Responds to Being Regarded As A Security.
In a tweet on its official Twitter account, Cardano said it holds a differing perspective regarding the recent categorization of ADA as a security under the jurisdiction of U.S. law. The proof-of-stake blockchain platform stated, “We look forward to the continued engagement with regulators and policymakers to achieve legal clarity and certainty on these matters.”
Additionally, the Cardano Foundation said they will continue to actively participate in the ecosystem, ensuring that Cardano remains a dynamic and robust platform for its users, developers, and the broader crypto community.
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