A host of tokens are the bones of contention in the recently-filed SEC lawsuits against Binance and Coinbase. In the former lawsuit, the regulatory agency has labelled BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities. In the latter case, the agency specifically called out SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
Solana, Cardano, and MATIC are among the common victims in both cases. In effect, they’re under the spotlight. The community has already come to the defense of these projects. Recently, the Cardano Foundation explicitly disagreed with the SEC’s classification of ADA under U.S. laws. Specifically, the official tweet noted,
“The Cardano Foundation disagrees with the recent qualification of ADA as a security under US law.”
Frederik Gregaard, the CEO of the not-for-profit entity, however asserted that the foundation is looking forward to “the continued engagement with regulators and policymakers to achieve legal clarity and certainty on these matters.”
“The Cardano Foundation disagrees with the recent qualification of ADA as a security under US law. We look forward to the continued engagement with regulators and policymakers to achieve legal clarity and certainty on these matters. – @F_Gregaard as quoted in @FortuneMagazine. https://t.co/ewYso7kWBE— Cardano Foundation (@Cardano_CF) June 6, 2023
ADA holders’ loss extends to 27%
At this stage, almost everyone is rallying for regulatory clarity for cryptos in the United States. Coinbase’s Chief Legal Officer Paul Grewal recently highlighted the need of “a clear path forward” on this front. The executive emphasized that digital assets do not collectively fit into any single existing regulatory box. He pointed out that some are commodities, some are securities, while some are neither, and some simply don’t map onto existing categories.
With the SEC maintaining a rigid stance, and regulators emphasizing that firms “simply can’t ignore the rules” because they don’t like them or prefer different ones, several well-known names from the space like Robinhood are re-evaluating their crypto token offerings. In fact, as reported in an article today, Cardano is one of few tokens that stands the risk of getting de-listed from the brokerage platform.
On the price front, the bearish pressure in the Cardano market has been intensifying. ADA has not been able to cap its losses. Over the past day alone, it has shed more than 4% of its value. It is currently trading around its March lows, and is roughly 27% down from its local peak of $0.46 registered in April.