Cardano Foundation Takes a Stand: ADA Firmly Asserted as Non-Security, Defending Position Against SEC Chair Gary Gensler

- Advertisement -

• • The Securities and Exchange Commission (SEC) has filed a lawsuit against cryptocurrency exchange Binance, alleging that several major cryptocurrencies are securities.
  • Among the named cryptocurrencies are Solana, BNB, and the native tokens for Polygon and Cardano.

As the regulatory grip around the cryptocurrency industry tightens, the Securities and Exchange Commission (SEC) is intensifying its scrutiny. In a bold move on Monday, the SEC filed a lawsuit against Binance, one of the world’s most prominent cryptocurrency exchanges. In this significant legal action, the regulatory body alleges that several high-profile cryptocurrencies—Solana, BNB, and the native tokens for Polygon and Cardano—are indeed securities.

“The Cardano Foundation disagrees with the recent qualification of ADA as a security under US law. We look forward to the continued engagement with regulators and policymakers to achieve legal clarity and certainty on these matters. – @F_Gregaard as quoted in @FortuneMagazine. https://t.co/ewYso7kWBE

— Cardano Foundation (@Cardano_CF) June 6, 2023

The designation of these cryptocurrencies as securities forms a substantial part of the SEC’s case against Binance. Securities are investment contracts that typically represent a stake or ownership interest in a company or venture. If a cryptocurrency is classified as a security, it falls under the regulatory authority of the SEC and is subject to specific requirements and restrictions. These typically include registration, disclosure of financial statements, and adherence to anti-fraud and anti-manipulation rules.

In the context of the SEC’s legal action, this indicates that the aforementioned cryptocurrencies—BNB, Solana, Polygon’s native token, and Cardano—should have been treated as securities by Binance. This implies that Binance should have adhered to securities law when facilitating transactions involving these tokens, potentially including compliance with disclosure requirements and anti-fraud provisions.

This lawsuit signals a significant escalation in the SEC’s regulatory actions towards cryptocurrencies. Notably, it is the first time that such prominent cryptocurrencies as Solana, BNB, and the native tokens of Polygon and Cardano, have been explicitly labeled as securities by a major regulatory body.

As the world of digital assets continues to evolve at a rapid pace, regulatory oversight is following suit. The classification of these major cryptocurrencies as securities could have significant implications for the industry, potentially requiring exchanges, and other platforms dealing with these tokens, to adjust their practices to comply with securities laws.

The impact of this lawsuit and the associated allegations will undoubtedly reverberate through the crypto sphere, highlighting the need for exchanges and other cryptocurrency entities to ensure compliance with existing securities regulations. The evolving landscape also underscores the importance for investors to stay abreast of regulatory changes and understand the potential implications for their digital assets.

Best Crypto Exchange for Everyone:

• Invest in Cardano and 70+ cryptocurrencies and 3,000 other assets.
• 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
• Copy top-performing traders in real time, automatically.
• Regulated by financial authorities including FAC and FINRA.

2.8 Million Users

Get Started