- John Deaton, the lawyer for XRP holders in the SEC vs Ripple lawsuit, asserts that ADA, MATIC, ALGO, and other cryptocurrencies are not securities.
- The US SEC’s recent classifications of certain cryptocurrencies as securities have led to a significant impact on the crypto market, causing tokens like Algorand and Flow to experience all-time lows.
Renowned XRP defender John Deaton, in the face of recent Securities and Exchange Commission (SEC) claims, has stood firm, arguing that several major cryptocurrencies, including Cardano (ADA), Polygon (MATIC), and Algorand (ALGO), are not securities. His argument? These assets are merely digital code sequences that exist within software, thus escaping the traditional definition of a security.
The disagreement erupted following a lawsuit initiated by the SEC against Coinbase, alleging violation of securities law and operating as an unregistered entity. In the unfolding drama, the SEC extended its claim to encompass other major cryptos such as ADA, MATIC, and ALGO.
The plot thickens as Deaton pushes back against the SEC’s assertions. He refers to a Supreme Court order that states it’s immaterial whether an underlying asset has intrinsic value or whether it is speculative. Deaton believes that it’s unconstitutional for the SEC to outrightly label a token as a security.
Deaton isn’t alone in his combat against the SEC’s classifications. Several crypto entities have rejected the SEC’s claims about their token’s status. Polygon Labs, Solana Foundation, and Input Output Global, the company behind Cardano, have each publicly refuted the regulator’s securities designation.
>> Buy Algorand quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with ALGO now. Visit Website <<
Meanwhile, in the wake of the SEC’s labeling, Algorand (ALGO) and Flow (FLOW) experienced historic price lows, dropping approximately 30% in the past week. Both, however, showed resilience, rebounding slightly since their respective drops.
Despite Deaton’s strong counter-arguments and the steadfast defense from various crypto entities, the lawsuit saga continues. It remains to be seen how this legal battle will reshape the landscape of cryptocurrency classifications and influence the future of digital assets as we know them.
Best Crypto Exchange for Everyone:
- Invest in Algorand 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