The blockchain firm IOG responded against the SEC’s claims that “ADA is a security token”.
Cardano is a popular Proof-of-stake (PoS) scalable blockchain network. ADA is a native coin of the Cardano blockchain. Input Output Hong Kong Global (IOG) is the backend developer firm behind the Cardano blockchain. The early Ethereum contributor Charles Hoskinson is the founder of the Cardano blockchain.
This week the United States Securities Exchange Commission (SEC) initiated two lawsuit actions against two crypto firms, namely BinanceUS & Coinbase exchange. In the suit’s complaint, the SEC body mentioned the ADA coin as a security token.
The IOG team officially addresses this matter and said that ADA is not a security token & also said that the SEC agency made mistakes, as they are considering ADA as a security on behalf of wrong facts.
“The filing contains numerous factual inaccuracies and will not impact IOG’s operations in any way. Under no circumstances is ADA security under U.S. securities laws. It never has been.”
According to IOG, before creating any rule or legislation the SEC body needs to first understand the basic concept of decentralisation nature.
Furthermore, IOG confirmed that it will continuously work focused on Cardano Blockchain & also will remain engaged with the regulatory bodies to help them to educate & develop legislation for the crypto sector.
It is worth it to note that ADA coin is not backed by venture capitalists VCs) investment & also the distribution of the ADA coin occurred without any partiality. Over any other crypto asset, Cardano is top in terms of retail holders of its ADA coin.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.