Cardano Foundation denies SEC’s classification of ADA as security, emphasizing the need for continued engagement with regulators to achieve legal clarity.
Following the recent lawsuit by the US Securities and Exchange Commission (SEC) against Binance, the Cardano Foundation has come forward to dispel claims from the agency that Cardano (ADA) is among the securities hosted on the Binance platform.
On Tuesday, the Cardano Foundation took to Twitter to express its disagreement with the classification of ADA as a security under US law. While disputing the SEC’s appellation against ADA, the foundation expressed openness to dialogue with policymakers in seeking legal clarity.
“We look forward to the continued engagement with regulators and policymakers to achieve legal clarity and certainty on these matters,” Frederik Gregaard, the CEO of the Cardano Foundation, said, as quoted in a Fortune Magazine article.
“The Cardano Foundation disagrees with the recent qualification of ADA as a security under US law. We look forward to the continued engagement with regulators and policymakers to achieve legal clarity and certainty on these matters. – @F_Gregaard as quoted in @FortuneMagazine. https://t.co/ewYso7kWBE
— Cardano Foundation (@Cardano_CF) June 6, 2023
The statement from Gregaard highlights the ongoing debate and legal uncertainty surrounding the regulatory classification of cryptocurrencies. While regulators grapple with establishing clear guidelines, the Cardano Foundation seeks to engage in dialogue to achieve legal clarity regarding ADA.
The SEC’s New List Includes Cardano
On Monday, the US regulator filed a suit against the largest crypto exchange, Binance, alleging that the platform facilitated trading activities for several major assets regarded as securities. It included Cardano (ADA), Solana (SOL), and Binance Coin (BNB), as reported by The Crypto Basic.
The SEC chairman Gary Gensler has advocated expanding the list of crypto classified as securities, arguing that most tokens, excluding Bitcoin (BTC), should be considered investment contracts and subject to SEC registration.
Notably, Ethereum (ETH) was not included in the lawsuit. However, as reported by The Crypto Basic, there are multiple hints of its potential classification as a security.
While ETH was not included in the SEC’s updated list of security tokens, the former CEO of Twitter, Jack Dorsey, has publicly stated that he believes ETH is security following the latest suit against American exchange Coinbase.