Cardanos IOG rejects the SEC's claim that ADA is a security

Cardanos IOG rejects the SEC's claim that ADA is a security

At the center of the high-risk procedure submitted by the US stock Exchange supervisory authority (Securities and Exchange Commission) is the question of which crypto-assets are securities. While the agency has been indicated for some time that it sees most of the crypto-assets as non-registered securities, the communication this week increases the use considerably, much to horror the industry.

Bitcoin, for example, was distanced from this context. Several old coins, including Cardano (ADA), were classified as security by the SEC.

Subsequently, Input Output Global (IOG)-the development company behind the Cardano ecosystem-published an explanation in which it rejected the claims of the Sec that ADA was a securities.

IOG: Under no circumstances is ada sure

In a recently published blog post, IOG said that the submission of the SEC was full of "numerous factual inaccuracies", and added that ADA was not a security in the sense of the United States and this was never

The technology company pointed out that the commission's approach to regulate the asset class by enforcing was criticized, and added that such a measure "does not offer the clarity or the security on which both the blockchain industry and consumers are entitled".

IOG also emphasized that understanding the functionality of decentralized blockchains was a fundamental component in creating a "responsible legislation".

"A good regulation protects users and offers a reasonable legal framework in which people can act. IOG will always work for regulation that makes sense and takes into account the transparent and decentralized nature of the blockchain."

IOG further claimed that the claim of the SEC would have no effect on its business.

SEC

In addition to Cardano, several crypto-assets were mentioned in the lawsuits against Binance and Coinbase as collateral.

This includes polygon (Matic), Cosmos (atom), Solana (Sol), Algorand (Algo), Binance Coin (BNB), Binance USD (Busd), Coti, Chiliz (CHZ), Near (Near), Flow (Flow), Internet Computer (ICP), Voyager Token (VGX), Dash (Dash), Nexo (Nexo), The Sandbox (Sand), Decentraland (Mana), Axie Infinity (AXS).

It is expected to take the outcome of the complaints of the second years. However, if the authority succeeds in classifying these token securities, the stock exchanges based in the USA will be forced to take them out of the list, which would significantly restrict their trade. Such a case would be a heavy blow to the country's crypto ecosystem.

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