Cardano’s IOG Denies SEC Claim That ADA Is A Security
OG thinks that SEC’s report is full of mistakes about facts.
At the heart of the US stocks and Exchange Commission’s high-stakes case is figuring out which crypto-assets are stocks. The agency has been giving hints for a while that it thinks most crypto-assets are unregistered stocks, but the charges this week really up the ante, much to the horror of the industry.
Bitcoin, for example, has been taken out of this picture. The SEC has called a number of altcoins, like Cardano (ADA), securities.
Then, Input Output Global (IOG), the company that built the Cardano environment, said that the SEC’s claims that ADA is a security were false.
IOG: ADA Not Security Under Any Circumstances
In a recent blog post, IOG said that the SEC’s filing is full of “numerous factual inaccuracies” and that ADA is not and has never been a security under US securities rules.
The tech company pointed out that the critics of the commission’s plan to regulate the asset class through enforcement and said that this “does not provide either the clarity or certainty to which both the blockchain industry and consumers are entitled.”
IOG also said that learning how decentralised blockchains work is one of the most important parts of making “responsible legislation.”
“Good regulation protects users and provides a sensible legal framework in which people can operate. IOG will always advocate for regulation that makes sense and honors the transparent and decentralized nature of blockchain.”
IOG also said that the SEC’s claim would not change how it does business.
Securities listed by the SEC
In the cases against Binance and Coinbase, besides Cardano, a number of other crypto assets have been named as securities.
These include 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), among others.
The lawsuits filed by the SEC are expected to take years to settle. But if the agency is able to prove that these tokens are securities, US-based platforms will have to take them off their lists, which would make it very hard for people to trade them. If this happens, it will be a huge blow to the country’s crypto economy.
