“Under no circumstances are ADAs securities under U.S. securities laws,” IOG said in a press release.
Cardano development firm IOG has refuted claims by the United States Securities and Exchange Commission (SEC) that the blockchain’s native token ada (ADA) could be considered a security.
IOG said the SEC’s lawsuit filed earlier this week against cryptocurrency exchanges Binance and Coinbase, which included ADA on a list of crypto tokens that can count as securities, contained “numerous factual inaccuracies.” The company said in a statement on Friday that the charges will have no impact on IOG’s operations.
“Under no circumstances is ADA a security under U.S. securities laws. It never has been,” the IOG said. “Understanding how decentralized blockchains operate is a fundamental component to crafting responsible legislation.”
The IOG said regulation through enforcement actions does not provide the necessary clarity or certainty that the blockchain industry and consumers deserve.
ADA prices have fallen 3% over the past 24 hours as the token mentioned in the SEC lawsuit extended its sell-off as traders reacted to the regulatory risk.
The SEC also identified tokens issued by foundations and companies or associated with Polygon (MATIC), Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP) Protocol, Near (NEAR), Voyager (VGX), Dash (DASH), and Nexo (NEXO) as securities.