$ADA Staking Is Not a Security, Declares Cardano Founder

Cardano founder Charles Hoskinson has publicly affirmed that ADA staking is not a security, in response to new guidance from the SEC’s Division of Corporation Finance on liquid staking.

✅What’s the SEC Saying?

The SEC defines liquid staking as delegating crypto via a service or protocol and receiving a "receipt" that represents staked assets + expected returns.

But here's the catch _ that doesn’t apply to Cardano’s native staking model.

💵 Why ADA Staking Stands Apart

Cardano uses a built-in staking system at the protocol level _ no intermediaries, no custodians. According to Hoskinson:

“ADA staking does not satisfy the Howey Test criteria.”

✅ Key Points:

No “investment of money” in a third-party enterprise

No expectation of profit solely from others’ efforts

Delegators secure the network, not speculate

Staking rewards are generated by protocol rules, not profit-sharing

☑️SEC’s Project Crypto – Already Delivering

This guidance came under the SEC’s new initiative — Project Crypto, designed to bring U.S. financial markets on-chain with modernized rules.

🤙 SEC Chairman Paul Atkins stated:

“Clearer rules are already being delivered. Liquid staking was step one.”

🗒️What This Means for ADA Holders

✅ No security classification = less regulatory risk

✅ ADA staking remains decentralized & accessible

✅ Reinforces Cardano’s long-standing commitment to transparency and compliance

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