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In a latest lawsuit filed by the United States Securities and Exchange Commission (SEC) towards Binance, the SEC labeled a number of distinguished cryptocurrencies, together with Cardano (ADA), as securities. However, the Cardano Foundation’s CEO has disagreed with this classification, emphasizing the necessity for regulatory readability within the business.

Cardano Foundation’s Stance $ADA Security Classification

Under US regulation, the latest classification of ADA as a safety by the SEC has been met with disagreement from Frederik Gregaard, CEO of the Cardano Foundation. The Cardano Foundation engages with regulators and policymakers to realize authorized readability and certainty.

SEC Chair Gary Gensler has persistently maintained that almost all crypto belongings are securities, aside from Bitcoin (BTC). 

According to the Bloomberg report, these belongings are thought of funding contracts and ought to be registered with the company. Ripple, a blockchain firm, has been engaged in a authorized battle with the SEC, because it accuses Ripple of illegally issuing and promoting the XRP token, which the SEC views as a safety somewhat than a commodity.

US SEC Lawsuits and Potential Delisting on Robinhood

The SEC has lately filed lawsuits towards main crypto exchanges, together with Binance and Coinbase, alleging that they provided digital belongings similar to Cardano, Solana, Polygon, and Binance Coin with out correct registration as securities. Consequently, common cryptocurrencies similar to Cardano (ADA), Solana (SOL), and Polygon (MATIC) face the opportunity of delisting from the Robinhood buying and selling platform.

Robinhood has indicated that it might take away tokens implicated within the SEC lawsuit towards Binance and Coinbase. Suppose a cryptocurrency is set to be a safety and has not been registered with the SEC. In that case, US-based exchanges like Robinhood can not legally facilitate buying and selling these tokens. Therefore, Robinhood might need to delist these cryptocurrencies to adjust to US securities legal guidelines.

Cardano’s Journey on Robinhood and Broader Crypto Offerings

In September 2022, Robinhood, a Nasdaq-listed on-line brokerage, added assist for the ADA cryptocurrency related to the Cardano blockchain. This enlargement of crypto choices was a part of Robinhood’s broader technique to develop its presence within the cryptocurrency area following the introduction of crypto buying and selling on its platform in early 2018.

However, because it was reported earlier a couple of potential threat of Cardano being delisted from Robinhood, Robinhood is considering delisting cryptocurrencies that the SEC deems as unregistered securities, together with Solana, Cardano, and Polygon.

As the crypto business grapples with regulatory challenges, reaching readability and certainty in laws stays essential. Both business gamers and regulatory our bodies should have interaction in ongoing discussions to stability innovation and compliance. Meanwhile, Cardano is buying and selling at $0.3323, down by 5.47% within the final 24 hours.

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Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency area for two years now. Previously he co-founded Govt. of India supported startup InThinks and is at present Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has revealed greater than 100 articles on cryptocurrency and blockchain and has assisted numerous ICO’s of their success. He has co-designed blockchain improvement industrial coaching and has hosted many interviews in previous. Follow him on Twitter at @sharmasunil8114 and attain out to him at sunil (at) coingape.com

The introduced content material could embody the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability in your private monetary loss.