Input Output Global (IOG), the company behind Cardano, responded to recent regulatory action concerning the legal status of its ADA token on June 6.
Input Output responds to SEC cases
IOG’s statement pertains to the U.S. Securities and Exchange Commission (SEC)’s recent actions against Binance and Coinbase. The SEC alleged that ADA and other cryptocurrencies traded on those exchanges are investment contracts and securities.
In response, IOG asserted that the filings contain “numerous factual inaccuracies.” It said that ADA is not, and has never been, a security under U.S. law.
IOG also criticized the SEC’s tendency to regulate by enforcement and its lack of clarity. The company said it is open to working with regulators to create pro-innovation frameworks, adding that it advocates for sensible regulation that “honors…the nature of blockchain.”
Input Output Global additionally stated that the ongoing cases against Coinbase and Binance will not affect its operations at all.
Hoskinson commented earlier
Cardano founder Charles Hoskinson previously commented on developments. On June 5, he called the Binance case “the next in a series of steps to implement chokepoint 2.0.”
The ADA token has lost significant value following the news. While the entire crypto market is down 2.6% over 24 hours, ADA is down 8.9% over 24 hours.