- Recent issues with Kraken and Paxos have caused people to worry about the status of their crypto.
- Dan Gambardello laid out two points as to why Cardano may not be considered a security.
- According to Gambardello, Americans were excluded from the Cardano ICO.
As if the 2022 crypto winter was not enough, many cryptocurrencies are again struggling to take flight given regulatory pressures from the US, particularly the Securities and Exchange Commission (SEC).
Notably, the SEC forced Kraken to shut down its staking program a few days ago. Yesterday, Paxos also got the short end of the stick, causing a massive crypto departure from Binance USD (BUSD) and Binance itself.
These events have led to people questioning whether their favorite altcoins will be next on the list. As for Cardano (ADA), crypto analyst and Cardano supporter Dan Gambardello laid out two reasons as to why the altcoin may not be considered a security.
As seen in the post above, the Cardano initial coin offering (ICO) happened in Japan back in the latter part of 2016. According to ICO Drops, the ICO ended on December 16 of the said year with up to $62.240 million raised.
In addition, as pointed out by Gambardello, American investors did not receive a pass for the ICO. This may prove significant since other countries do not tag cryptocurrencies as securities and ICOs as unregistered security sales.
As for Gambardello’s second point, the judge presiding over the lawsuit between the SEC and Web3-based data sharing and publication platform LBRY said that secondary sales of LBC tokens did not qualify as securities. This sets a precedent for future crypto lawsuits from the SEC, as per the Cardano fan’s explanation.
However, the US still has no clear guidelines on crypto regulation. This lack of clarity presents challenges to adoption and regulation for many crypto firms and platforms.
