The US Securities & Exchange Commission is after Coinbase and Binance. This is evident from the filings targeting the said crypto ventures. However, the filings also mention the Cardano Network and its ADA token, sparking a sidelined discussion about its security among the users. IOG has now come out to defend the network and the token.
IOG has acknowledged the SEC’s report and clarified that the filings are factually inaccurate, as the ADA poses no threat to its users. IOG has also assured the public that the SEC report will not impact its operations.
In its defense, IOG has sought more specific rules and enforcement guidelines for the blockchain industry. The document continues by requesting clarification for consumers in the digital ecosystem. This is plausible for the reason that the blockchain industry is aiming for longevity. This is only feasible if crypto businesses and customers have clear guidelines and regulations.
Uncertainty will only drive innovators and their clientele overseas. Thus, contributing to the rising number of squandered opportunities rather than the nation’s economic growth.
IOG believes that a fundamental comprehension of blockchain technology and its underlying mechanism is essential at this time. Then and only then can responsible regulations be formulated by the relevant authorities. IOG has invited partnerships from across the industry and guaranteed full cooperation in assisting regulators with the formulation of the guidelines.
These will not just take the industry forward in a healthy manner but also maintain the decentralized nature of the industry.
Advocacy for IOG stands true in situations that demonstrate honoring the decentralization and transparency of the blockchain. Moreover, regulations must understand blockchain technology’s role in the modern world.
The SEC recently charged Coinbase and Binance for failing to register their products and services. Allegations against Coinbase and Binance highlight that the ventures have been depriving their customers of necessary protection that is otherwise available to registered firms. Coinbase, specifically, has been alleged to offer securities to multiple buyers and sellers without registering the marketplace.
That is not all, as Coinbase has been accused of acting as an intermediary to settle transactions in crypto again without registration.
Firms that register with the SEC actually grant their customers access to healthy practices of regulators like inspection, record keeping, and preventing conflict of interest. The staking-as-a-service program by Coinbase is also under scrutiny. Strong statements have been made by Gurbir S. Grewal and Gary Gensler when it comes to disclosures and manipulations.
Whether ADA is a threat or not remains to be seen at a time when the token is exchanging hands at $0.33. This is a 1.52% increase in the last 24 hours at the time of drafting this article.
IOG has made a statement in its defense. The SEC could soon take a call to reply or simply continue pursuing charges against crypto ventures.