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

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.