#CardanoDebate

🤔 Is ADA a security? 🤔

👉 In 2023, the SEC stated that ADA qualifies as a security, claiming it meets the Howey test.

Input Output Global (IOG) and the Cardano Foundation firmly rejected this classification, arguing that ADA does not meet the legal criteria that define a security.

👉 $100M Treasury proposal for stablecoin liquidity

On June 13, 2025, ADA fell $100M) from the treasury to boost liquidity in stablecoins like USDM.

Charles Hoskinson promoted a gradual sale, in OTC and algorithms, to minimize impact.

Some members expressed concern about potential selling pressure and front-running on ADAV.

👉 Summit after the budget and inclusive governance

Hoskinson proposed an in-person summit to review the 2025 budget cycle, including key Reps, Foundation, and Constitutional Commission.

There was intense debate over whether this would be elitist: some believe it should be open to all dReps, while others fear that a meeting of 500 people would be unmanageable.

👉 Budget clashes: Foundation vs IOG

The Cardano Foundation proposed cutting nearly 44% (~31M ADA) from the budget suggested by Intersect/IOG for core and open-source development.

This generated criticism, pointing out that it hinders technical progress and the quality of fundamental tools.

👉 Liquidity challenges and stablecoin strategies

Hoskinson highlighted that the lack of liquidity in stablecoins is one of the greatest weaknesses of the ecosystem, and criticized that IOG will not use private capital for it — according to him, that falls to the Foundation, which has donated ADA for that purpose.