The founder of Cardano claims: $ADA
A Staking is not a security
Charles Hoskinson, CEO of Input Output and founder of Cardano, firmly stated that ADA staking does not qualify as a security, responding to new guidance from the SEC's Division of Corporation Finance regarding liquid staking.
The SEC defined liquid staking as cryptocurrency staking through a third-party provider or protocol and receiving a tokenized receipt representing the staked asset and potential rewards.
Cardano operates differently — its staking mechanism is built into its core consensus layer. ADA holders delegate tokens to staking pools, earning rewards for helping secure and validate the network.
Hoskinson emphasized that Cardano's staking model does not meet the Howey test, a legal standard used to identify securities. ADA holders do not make investments in a 'common enterprise' and do not expect profits 'solely from the efforts of others.' Instead, they passively contribute to the network's operations and receive compensation for this service — not within any centralized profit scheme.
🔸 The SEC's Crypto Project is already making waves
Clarification on liquid staking emerged shortly after the SEC launched the Crypto Project aimed at updating financial market rules and transitioning to on-chain finance.
Chairman Paul Atkins noted that progress is already evident. Recent guidance on staking is one example of the SEC's commitment to clear, updated rules for digital finance and new technologies.