In a recent response to the U.S. Securities and Exchange Commission’s (SEC) complaint mentioning Cardano’s native token ADA, Input-Output Gate (IOG), the development lab behind Cardano, firmly dismissed the allegations, stating that ADA is not a security under U.S. securities laws. IOG underscored the importance of understanding decentralized blockchains and urged the development of responsible legislation through cross-industry collaboration with regulators.
IOG’s response to the SEC complaint was echoed by Dan Gambardello, founder of Crypto Capital Venture. Gambardello reiterated the stance that ADA is not a security and expressed support for IOG’s commitment to responsible legislation.
HUGE: The official #Cardano IOG has responded to the SEC complaint which mentions $ADA— Dan Gambardello (@cryptorecruitr) June 7, 2023
"The filing contains numerous factual inaccuracies and will not impact IOG’s operations in any way. Under no circumstances is ADA a security under U.S. securities laws. It never has been."
The SEC’s recent filing, which contained several factual inaccuracies according to IOG, will have no impact on the organization’s operations. IOG firmly believes that ADA has never been considered a security and challenges the regulator’s understanding of decentralized protocols.
The response also emphasized that the SEC’s actions demonstrate the need for significant progress in regulating blockchain technologies. IOG emphasized that enforcement actions alone do not provide the necessary clarity and certainty that both the blockchain industry and consumers deserve.
Blockchain technology operates on principles of transparency, auditability, immutability, and fairness. IOG stressed the importance of regulations that recognize and preserve these fundamental values. The organization called for sensible regulation that strikes a balance between user protection and creating a favorable legal framework for blockchain operations.
As the blockchain industry continues to evolve, IOG’s response highlights the critical role of understanding decentralized systems and the need for regulators to adapt to this emerging landscape. The organization firmly advocates for regulation that aligns with the transparent and decentralized nature of blockchain technology, ultimately ensuring a safe and innovative environment for all stakeholders involved.