$ADA Important news today: 📰🗞️
Charles Hoskinson, the founder of Cardano, announced that storing ADA is not secure, following guidance from the U.S. Securities and Exchange Commission (SEC) regarding liquid staking. The commission defines liquid staking as the process of storing cryptocurrencies through a service provider or software protocol while receiving a receipt representing the assets and returns.
Cardano has an integrated staking model that allows ADA holders to earn rewards by delegating tokens to staking pools on the network, but Hoskinson pointed out that this model does not comply with traditional security standards. Storing ADA does not mean "investing in a joint venture" or "waiting for profits from the efforts of others"; rather, it simply involves delegating tokens to contribute to securing the network.
The SEC's clarification is part of a crypto project initiative launched by the commission, aimed at updating regulatory rules for digital currencies in the context of the transition to a blockchain-based financial environment.
Paul Atkins, the chairman of the commission, confirmed that the initiative is yielding results, including new guidelines related to liquid staking.