Is Cardano (ADA) a security? This VC says no.
Because Cardano held its ICO in Japan, the SEC can’t classify Cardano as a security.
Cardano held its ICO in Japan, so the SEC can’t classify Cardano as a security. According to venture capitalist Dan Gambardello, this means Cardano isn’t under the jurisdiction of the U.S. SEC.
In a tweet, Gambardello explains that Cardano’s ICO was held in Japan. So ADA can’t be considered a security under U.S. law.
His second argument concerns a case the SEC won in November. "A judge recently ruled in the LBRY case that the secondary sale of LBC tokens wasn’t securities. That sets an important precedent for ADA," Gambardello says.
The entrepreneur has received lots of positive messages from followers, but some investors are alarmed by the latest moves. According to the SEC, "all cryptocurrencies should be classified as securities." With that stance, the U.S. Securities and Exchange Commission is also pursuing the Ripple case. There’s been no settlement in the case that’s crucial for the crypto market since December 2020.
Ripple CEO Brad Garlinghouse hopes for a decision in June 2023, but only with the promise that XRP won’t be regulated as a security. It remains to be seen whether the SEC will then turn its attention to Cardano.
While the own stablecoin just launched, ADA is trading at $0.40 with a price rise of almost 6 percent.
