SEC Will Not Come After Cardano’s Native Token, ADA, Says Charles Hoskinson
Cardano’s founder, Charles Hoskinson, believes that the United States Securities and Exchange Commission (SEC) will not target ADA, the project’s native token. In recent lawsuits against Coinbase and Binance, the SEC classified several tokens, including Cardano, as securities that should be registered before being listed on exchanges. However, Hoskinson pointed out that there has been no enforcement action against ADA so far, and he doesn’t anticipate that changing because ADA was mentioned as a security in a lawsuit against a crypto exchange.
Key Points:
– SEC has classified Cardano and other tokens as securities, requiring registration before listing on exchanges.
– Coinbase CEO revealed that the agency asked the exchange to delist all tokens except bitcoin, as they qualified as securities.
– Ripple Labs has been engaged in a legal battle with the SEC over whether XRP is a security.
– Hoskinson clarified that the SEC’s actions have not targeted ADA, and there has been no enforcement event against Cardano.
– Hoskinson believes that the SEC’s crackdown on crypto entities is politically motivated and unrelated to securities laws.
Hot Take:
Charles Hoskinson’s confidence that the SEC will not come after ADA provides reassurance to Cardano holders and the broader crypto community. His explanation of the SEC’s political motivations sheds light on the agency’s actions and raises questions about the fairness and impartiality of its enforcement efforts. As the crypto industry continues to navigate regulatory challenges, it is crucial to stay informed and engaged in discussions surrounding the evolving regulatory landscape.
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