Cardano’s development company, IOG, has firmly rejected the U.S. Securities and Exchange Commission’s (SEC) assertions that ADA, the native token of the Cardano blockchain, should be classified as a security.
IOG responded to the SEC’s recent lawsuits targeting major crypto exchanges Binance and Coinbase, which listed ADA among the tokens deemed securities.
IOG adamantly stated that the SEC’s claims contained numerous factual errors and reassured stakeholders that their operations would remain unaffected.
In a statement released on Friday, IOG emphasized that ADA has never been, nor should it be considered, a security under U.S. securities laws.
The company emphasized the importance of comprehending the workings of decentralized blockchains to establish responsible legislation.
IOG criticized the SEC’s approach of relying on enforcement actions for regulation, arguing that it fails to provide the desired clarity and certainty both for the blockchain industry and consumers.
The SEC’s recent legal actions, coupled with growing regulatory concerns, triggered a 3% drop in ADA’s price over the past 24 hours.
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Traders, perceiving heightened regulatory risks, extended the sell-off of tokens mentioned in the SEC’s lawsuit. However, IOG remains steadfast in its position, maintaining that the ongoing allegations will not disrupt its operations.
