Cardano developer IOG claps back to the SEC’s lawsuit, fails to catalyze ADA price recovery

  • Cardano network’s developer Input Output Global slammed the Securities and Exchange Commission’s move to label ADA as a security. 
  • The developer says that under no circumstances is Cardano a security under US securities law. 
  • ADA price declined 14.8% over the past week

The US Securities and Exchange Commission (SEC) labeled Cardano, the native token of Input Output Global’s (IOG) smart-contract platform, as a security in its lawsuit against Binance and Coinbase. The Cardano developer slammed the SEC’s classification and argued that ADA is not a security according to the US Securities law. 

Also read: XRP braves SEC’s crackdown on cryptocurrencies sustains above $0.52

Cardano developer slams the SEC for labeling ADA as a security

Ethereum’s largest competitor in terms of smart contract platforms, Cardano, was labeled as a security by the SEC. The regulator listed the asset earlier this week in its lawsuit against two of the largest crypto exchange platforms, Binance and Coinbase. 

While the move did not hamper the total value of assets locked on Cardano, it negatively influenced the asset’s price. Read more about TVL here

In a press release, Cardano’s developers at IOG cited factual inaccuracies in the SEC’s labeling of ADA as a security. The release states that Cardano has never been a security under US Securities laws. 

IOG explains that policymakers need to review how decentralized blockchains operate as a fundamental component and create responsible legislation. The developers said that the SEC’s latest filing demonstrates that there is a long way to go in this regard. 

ADA price fails to recover

While assets like XRPLedger’s native token (XRP) and Lido DAO’s (LDO) have emerged resilient, heading towards a profitable weekly close, ADA price failed to recover. ADA observed a decline of 14.8%, from $0.378 on June 2 to $0.322 at the time of writing. 

Cardano developers’ response to the SEC lawsuit failed to catalyze a recovery in the altcoin. It remains to be seen whether ADA price will recoup its losses next week. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

MakerDAO whales sold over $9 million in tokens, MKR price takes a hit

MakerDAO whales sold over $9 million in tokens, MKR price takes a hit

MakerDAO whales sold over 3,000 MKR tokens in the past day. Maker supply on exchanges climbed between April 20 and Monday. MKR price declined by nearly 2% on Monday. 

More Maker News

XRP rallies past $0.50 as Ripple prepares for response to SEC requirement for $2 billion in penalty

XRP rallies past $0.50 as Ripple prepares for response to SEC requirement for $2 billion in penalty

Ripple prepares to file the opposition brief against the SEC on Monday. Ripple will respond to the SEC’s demand for $2 billion in fines requested in its remedies-related opening brief.

More Ripple News

Crypto AI token comeback likely after Apple's potential on-device LLM

Crypto AI token comeback likely after Apple's potential on-device LLM

Artificial Intelligence (AI) crypto tokens Render (RNDR), Bittensor Tao (TAO), The Graph (GRT), AIOZ Network (AIOZ), Golem (GLM), OriginTrail (TRAC) and RSS3 (RSS3) prices rally on Monday. 

More Cryptocurrencies News

Enjin Coin provides high-reward, low-risk buy-the-dip opportunity Premium

Enjin Coin provides high-reward, low-risk buy-the-dip opportunity

Enjin Coin (ENJ) price has been on a downtrend since the 2021 peak and shows signs of slowing down. The more than 50% crash noted in the past four weeks suggests a potential buy-the-dip opportunity. 

More Cryptocurrencies News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis