ADA Not in SEC’s Scope: Cardano’s Hoskinson Asserts Non-Security Designation

• Cardano’s founder, Charles Hoskinson, emphasizes that there has been no enforcement action against ADA by the SEC.
• Hoskinson suggests that the SEC’s ongoing actions in the crypto realm are politically motivated, driven by the controversial dealings of Sam Bankman-Fried.

Understanding the SEC’s Actions in the Crypto Space

The U.S. Securities and Exchange Commission (SEC) has lately intensified its scrutiny within the cryptocurrency domain, resulting in widespread apprehensions about potential regulatory actions against leading cryptocurrencies. Amid this scenario, Charles Hoskinson, the visionary behind Cardano, has come forward to address some of the prevailing concerns surrounding ADA, Cardano’s native token.

In a recent dialogue on Corey Costa’s Crypto Coins, Hoskinson tackled the matter head-on, dispelling rumors and speculations about ADA’s potential classification as a security. He emphasized the importance of precision in our narratives, stating,

“It’s crucial to be accurate with our language. There’s no pursuit of Cardano by the SEC merely because in some litigation involving a crypto exchange, a token is labeled as a security.”

Such assertions become all the more relevant in the light of two significant lawsuits where the SEC identified several tokens, including Cardano’s ADA, as securities. These tokens, according to the SEC, should have been registered prior to being listed on crypto exchanges. Notably, Brian Armstrong, the CEO of Coinbase, revealed that the SEC had even nudged the platform towards delisting all tokens, ADA included, except for bitcoin, viewing them as securities.

This landscape is reminiscent of the SEC’s prolonged legal tussle with Ripple Labs over the status of XRP. While Ripple staunchly defended its belief that XRP is not a security, a recent judicial decision compartmentalized XRP’s sales, determining that while its institutional sales were securities, its retail sales were not.

Hoskinson’s insights did not stop at ADA. He delved deeper, offering his perspective on the SEC’s overarching strategies and motivations. To him, the Commission’s ongoing crackdown transcends securities laws and is deeply entrenched in political machinations.

A pivotal figure in this narrative is Sam Bankman-Fried, the erstwhile CEO of the now-defunct FTX crypto exchange, whom Hoskinson likened to the notorious Bernie Madoff. Hoskinson articulated that a political faction in the U.S., having garnered substantial financial backing from Bankman-Fried, is now working overtime to distance themselves from any semblance of corruption. This has led them to transition from a cooperative, bipartisan approach in framing crypto regulations to a more confrontational stance, casting aspersions on various players in the crypto ecosystem.

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