Charles Hoskinson, the founder of Cardano (ADA), expressed confidence that the United States Securities and Exchange Commission (SEC) would not come after ADA, stating that the agency’s actions are politically motivated and unrelated to securities laws.
No Enforcement Action Against ADA
During a recent YouTube interview, Hoskinson emphasized that there has been no enforcement action taken against Cardano’s native token, ADA, thus far. He pointed out that even though ADA was mentioned as a security in a lawsuit against a crypto exchange, it does not imply that the SEC will target the project.
The SEC’s recent lawsuits against major cryptocurrency exchanges Coinbase and Binance led to the classification of approximately 12 tokens, including ADA, Binance Coin (BNB), Solana (SOL), Polygon (MATIC), and Filecoin (FIL), as securities. The agency demanded that these tokens be registered before being listed on exchanges.
Hoskinson recalled Coinbase CEO Brian Armstrong disclosing that the SEC asked the exchange to delist all tokens except bitcoin due to their classification as securities. However, despite these actions, no enforcement event has occurred regarding ADA.
Political Motivations of the SEC
In response to a question about the SEC’s perceived antagonism towards Cardano and other blockchains, Hoskinson clarified that the SEC’s actions do not extend to ADA. He emphasized the importance of accurate language, stating that merely mentioning something as a security in a lawsuit against an exchange does not equate to the SEC coming after Cardano.
Hoskinson further explained that the SEC’s crackdown on crypto entities is politically driven and unrelated to securities laws. He attributed the agency’s actions to Sam Bankman-Fried (SBF), the disgraced founder and former CEO of bankrupt crypto exchange FTX, who he likened to “the Bernie Madoff of our generation.”
According to Hoskinson, one U.S. political party, which received substantial funding from SBF, aims to portray itself as non-corrupt. As a result, the party has shifted from a bipartisan approach toward creating crypto regulations to accusing everyone of being bad actors and potentially imprisoning them.
In conclusion, Hoskinson maintains confidence that Cardano and ADA will not be targeted by the SEC, emphasizing that the agency’s actions are driven by political motivations rather than adherence to securities laws.
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Cardano’s Robust Compliance Efforts and Regulatory Approach
While addressing concerns about potential SEC scrutiny, Charles Hoskinson took the opportunity to emphasize the proactive measures Cardano has taken to ensure compliance with regulations and navigate the evolving regulatory landscape.
Embracing Regulatory Compliance. Hoskinson highlighted Cardano’s commitment to maintaining compliance with regulatory requirements from the outset. He emphasized that Cardano has invested significant resources in building a platform that is designed to align with existing and future regulations.
The project has taken a meticulous approach, working closely with legal experts and industry professionals to navigate the complex regulatory frameworks. By actively engaging with regulators and demonstrating a commitment to compliance, Cardano (ADA) aims to establish itself as a trusted and responsible player in the crypto industry.
Emphasis on Security and Investor Protection: The Cardano founder further underscored the project’s dedication to prioritizing user security and investor protection. He explained that Cardano’s focus on building a robust ecosystem is rooted in creating a secure and transparent platform for investors and users alike.
By aligning with best security practices, implementing stringent protocols, and adhering to regulatory standards, Cardano aims to foster a secure environment in which users can confidently participate. Hoskinson believes that robust security measures and compliance efforts will contribute to Cardano’s long-term success and resilience.
A Collaborative Approach with Regulators: Hoskinson conveyed Cardano’s willingness to collaborate with regulatory bodies to establish clear guidelines and frameworks that benefit both the industry and investors. He emphasized the importance of dialogue and engagement between blockchain projects and regulators to foster mutual understanding and innovation-friendly regulations.
As the regulatory landscape continues to evolve, Cardano remains proactive in advocating for sensible regulations that protect investors while fostering innovation. The project aims to be a partner to regulators by providing valuable insights and actively participating in discussions to help shape an effective regulatory framework that benefits all stakeholders.
By prioritizing compliance, security, and collaboration with regulators, Cardano demonstrates its commitment to establishing itself as a trusted and forward-thinking blockchain platform in the rapidly developing cryptocurrency ecosystem.
Disclaimer: The above information is provided for informational purposes only and does not constitute financial or investment advice. Users are advised to conduct their own research and consult with a professional financial advisor before making any investment decisions.
Adedoyin is a graduate of Law and a Crypto & Blockchain expert who strongly believes that Blockchain is the future. At TimesTabloid, she focuses on crypto and blockchain educational content.
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