On June 6, Cardano’s creator, Input Output Global (IOG), replied to recent regulatory action over the legitimacy of its ADA cryptocurrency.
The SEC’s most recent measures against Binance and Coinbase are the subject of IOG’s statement. The SEC said that the ADA cryptocurrency and other cryptocurrencies traded on such platforms constitute securities and investment contracts.
IOG responded by claiming that the documents include “numerous factual inaccuracies.” Under U.S. law, the ADA is not now and never has been a security.”
The SEC’s propensity for enforcing regulations as well as its lack of transparency was further criticized by IOG. The firm said that it supports reasonable legislation that “honors the nature of blockchain” and that it is willing to collaborate with regulators to develop pro-innovation frameworks.
Additionally, Input Output Global indicated that the ongoing legal proceedings against Coinbase and Binance will not have any impact on the firm’s business.
It was stated that effective regulation should safeguard consumers and offer a legal framework that takes into account the transparency and decentralization of blockchain. Popular cryptocurrency trading platform Robinhood has stated that it may delist numerous coins involved in the SEC complaint, including ADA, to comply with American securities rules during current regulatory turmoil.
IOG has categorically denied the SEC’s accusations and is ready to defend ADA’s standing. The legal classification of ADA and other cryptocurrencies as securities might have significant effects on exchanges, traders, and the overall cryptocurrency sector in the United States. As a result, participants in the blockchain and cryptocurrency industries will be carefully monitoring how this legal dispute is resolved.
Charles Hoskinson, the founder of Cardano, has already offered his thoughts on the situation. The Binance case, he said on June 5, was “the next in a series of steps to implement chokepoint 2.0.”