Cardano Developer Rejects SEC Claim Its ADA Token Is a Security

Cardano development company IOG dismissed U.S. Securities and Exchange Commission (SEC) claims that ada (ADA), the blockchain's native token, can be viewed as a security.

IOG said SEC lawsuits filed earlier this week against crypto exchanges Binance and Coinbase, which included ADA in a list of crypto tokens that count as securities, contained “numerous factual inaccuracies.” The allegations will have no impact on IOG's operations, the company said in a Friday statement.

“Under no circumstances is ADA a security under U.S. securities laws. It never has been,” IOG said. “Understanding how decentralized blockchains operate is a fundamental component in creating responsible legislation.”

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IOG said regulation through enforcement actions does not provide the necessary clarity or certainty that both the blockchain industry and consumers deserve.

The ADA price fell 3% in the past 24 hours as tokens named in the SEC lawsuit extended their sell-off as traders reacted to regulatory risk.

The SEC also identified tokens issued by foundations and companies or tied to protocols Polygon (MATIC), Sandbox (SAND), Filecoin FIL$0.9791, Axie Infinity (AXS), Chiliz (CHZ), FLOW$0.03173, Internet Computer (ICP), NEAR$2.3819, Voyager (VGX), Dash (DASH) and NEXO$0.8423 as securities.

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