• Charles Hoskinson, the founder of Cardano (ADA), believes that US SEC will not come after the project’s native token, ADA.
• US SEC has taken action against Coinbase and Binance, classifying 12 tokens, including ADA, as securities which ought to be registered before being listed on exchanges.
• The presiding judge in a lawsuit between Ripple Labs and the SEC recently ruled that retail sales of XRP do not constitute securities.
US SEC Not Coming After Cardano (ADA)
Charles Hoskinson, founder of Cardano (ADA), believes that the United States Securities and Exchange Commission (SEC) will not come after its native token, ADA. During a recent YouTube interview on Corey Costa’s Crypto Coins, Hoskinson pointed out that there has been no enforcement action against ADA so far and this is unlikely to change anytime soon.
SEC’s Crackdown on Crypto Entities
The SEC has been cracking down on crypto entities for some time now and has recently taken action against Coinbase and Binance by classifying twelve tokens including ADA as securities which need to be registered before they can be listed on exchanges. Coinbase CEO Brian Armstrong once revealed that the agency had asked the exchange to delist all tokens except Bitcoin as they were considered securities.
Lawsuit Between Ripple Labs & The SEC
The allegations made by the SEC have been at the center of a three-year-long legal spat between Ripple Labs and the agency with Ripple remaining adamant about its belief that XRP was not a security. Recently though,the presiding judge in the case ruled that retail sales of XRP did not constitute securities while institutional sales did indeed qualify as such.
Opinion on Cryptocurrency Regulation
Hoskinson explained during his interview that he believed the crackdown from the SEC is more political than anything else and does not adhere to securities laws in any way or form. He also believes that cryptocurrency regulations are necessary but should still allow innovation to take place within this space freely without having too much control over it from government agencies like the SEC.
Overall it seems like Charles Hoskinson does not believe that Cardano’s native token ADA will be targeted by US regulators anytime soon despite other projects such as XRP facing significant scrutiny from them recently due to its classification as a security by certain courts in America.