Cardano (ADA) development company IOG has denied the US Securities and Exchange Commission's (SEC) claims that ADA, the native token of the blockchain, could be viewed as a security.
Cardano Developer Denies SEC's Claim that ADA Token Is a Security
"The ADA is under no circumstances a security under US securities laws," IOG said in a statement.
IOG said the SEC lawsuits filed earlier this week against crypto exchanges Binance and Coinbase, which included ADA on the list of crypto tokens considered securities, contained "a large number of factual inaccuracies".
The company said in a statement today that the allegations will have no impact on IOG's operations.
“The IOG, ADA is under no circumstances a security under US securities laws. Nor has it ever been,” he said. "Understanding how decentralized blockchains work is an essential component of creating responsible legislation."
IOG said that regulation through enforcement actions does not provide the necessary clarity or certainty that both the blockchain industry and consumers deserve.
The ADA price has dropped 3% in the past 24 hours as the tokens named in the SEC lawsuit expand their sales as investors react to regulatory risk.
The SEC may also be issued by foundations and corporations, or are issued by Polygon (MATIC), Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR). , Voyager (VGX), Dash (DASH) and Nexo (NEXO) protocols have also defined tokens as securities.
*Not investment advice.