Following the United States Securities and Exchange Commission’s (SEC) inclusion of Cardano (ADA) in its lawsuit against Binance, the CEO of Cardano Foundation has expressed disagreement with the SEC’s classification of ADA as a security.
The Cardano Foundation emphasizes the need for regulatory clarity and constructive engagement with regulators to achieve legal certainty.
As the SEC continues its scrutiny of cryptocurrencies, including those offered by exchanges like Binance and Coinbase, the status of ADA and other digital assets remains a point of contention. Notably, the SEC’s omission of Ethereum (ETH) in this context raises questions regarding its classification.
Cardano Foundation Challenges SEC’s Security Classification: In response to the SEC’s classification of ADA as a security in the lawsuit against Binance, the CEO of Cardano Foundation, Frederik Gregaard, has voiced disagreement.
Gregaard emphasizes the importance of regulatory clarity and ongoing engagement with regulators to establish legal certainty regarding the status of ADA and other cryptocurrencies.
SEC Chair Gary Gensler has consistently maintained the viewpoint that nearly all crypto assets, with the exception of Bitcoin, should be classified as securities.
This perspective implies that these assets represent investment contracts and should be subject to SEC registration requirements.
However, this stance has been a contentious issue between the SEC and blockchain company Ripple, which is currently facing a lawsuit over the alleged illegal issuance and sale of the XRP token.
The recent lawsuits filed by the SEC against leading crypto exchanges Binance and Coinbase highlight the agency’s allegations of offering digital assets without proper registration.
In the case of Binance, the SEC explicitly mentions Cardano, Solana, Polygon, Binance Coin, and other cryptocurrencies as being offered without the necessary securities registration.
However, it is worth noting that Ethereum is conspicuously absent from the list, despite previous suggestions by Gensler regarding its potential security status.