In response to the U.S. Securities and Exchange Commission (SEC) lawsuits filed earlier this week against crypto exchanges Binance and Coinbase, which included ADA in a list of crypto tokens that count as securities, Cardano development company IOG has dismissed the claims. “Under no circumstances is ADA a security under U.S. securities laws. It never has been,” IOG said in a Friday statement.
The company noted that the allegations will have no impact on IOG’s operations and that understanding how decentralized blockchains operate is a fundamental component in creating responsible legislation. IOG also said that regulation through enforcement actions does not provide the necessary clarity or certainty that both the blockchain industry and consumers deserve.
The ADA price fell 3% in the past 24 hours as tokens named in the SEC lawsuit extended their sell-off as traders reacted to regulatory risk. The SEC also identified tokens issued by foundations and companies or tied to protocols Polygon (MATIC), Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager (VGX), Dash (DASH) and Nexo (NEXO) as securities.
IOG Dismisses SEC Claims That ADA is a Security
