Top Lawyer Says SEC Made a Weak Argument By Alleging That Cardano Is a Security

Attorney Morgan faults the SEC’s recent claims against Cardano (ADA).

In a tweet today, attorney Bill Morgan has reacted to the allegations made by the SEC in the Binance lawsuit about Cardano ADA being a security.

According to attorney Morgan, the facts tendered by the SEC to prove that ADA constitutes a security is the weakest argument the commission has ever made in its recent crypto-related cases, including Binance, Bittrex, and Wahi.

“Of all the facts alleged about the several so-called digital asset securities in the SEC cases against Wahi, Bittrex, and Binance, the facts against #Cardano look the weakest,” said Morgan.

The prominent Australian-based lawyer made this known in response to a tweet by famous Cardano enthusiast Chris O.

ADA Enthusiast Says SEC Argument Is Extremely Weak

Shortly after the SEC sued Binance and its founder Changpeng Zhao (CZ) for facilitating the trading of unregistered securities like ADA, Chris asserted that the regulator’s argument against Cardano is extremely weak.

According to Chris, the SEC did not mention that ADA Initial Coin Offering (ICO) took place in Japan, with U.S. investors prohibited from participating in the event at the time.

Chris also noted that the SEC failed to mention that the Cardano protocol is run by thousands of stake pool operators (SPO) worldwide. He added that Cardano’s decentralization would continue to shield the cryptocurrency from being classed as a security.

#Cardano community, having read the specific complaint relevant to $ADA, imho it is an EXTREMELY weak argument made by the SEC. They completely omit the ICO took place in Japan & not available to US investors. They claim the 3 founding entities are a centralized oligarchy that… pic.twitter.com/2JNNG2wapa

— Chris O (@TheOCcryptobro) June 5, 2023

As reported yesterday, the SEC mentioned ADA among the list of unregistered “securities” Binance supports on its trading platform. Other crypto assets the SEC alleged to be securities in the lawsuit include ALGO, BNB, BUSD, SOL, FIL, etc.