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Cardano denies SEC’s ‘security’ claim as ADA bleeds

Press Releases Crypto News AMB-Crypto Cardano denies SEC’s ‘security’ claim as ADA bleeds

Since the SEC’s accusation, the value of ADA dropped nearly 14%.
The cohort of users holding between 1,000 – 1 million ADA tokens shrunk considerably over the week.

The recent blow by the U.S. Securities and Exchange Commission (SEC), labeling as many as ten cryptocurrencies as securities has plunged the market into a major crisis with FUD becoming the order of the day.

Read Cardano’s [ADA] Price Prediction 2023-24

On this list was Cardano [ADA], the seventh-largest crypto asset by market cap and one of the most popular smart contracts platforms.

Since the SEC’s accusation, the value of ADA has dropped about 14% as worried investors hurried to sell out their tokens for fear of it being obsolete in the future. Data from Santiment highlighted that trading volume surged significantly over the last few days.

Source: Santiment

Cardano stays firm

In what looked like an attempt to assuage ADA investors, Cardano developer Input Output Global (IOG) issued a detailed response to the regulator’s allegation. IOG referred to the SEC’s submission as having numerous factual errors and vehemently refuted all claims.

“Under no circumstances is ADA a security under U.S. securities laws. It never has been.”

IOG went on to call the action “regulation by enforcement” and questioned the agency’s clarity in understanding blockchain technologies.

Additionaly, IOG stated that it was prepared to engage with regulators to create a framework that protects consumers’ interests while fostering innovation in the Web3 sector.

Earlier, Cardano founder Charles Hoskinson responded to SEC’s action on crypto behemoth Binance.

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Author: Suzuki Shillsalot

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