Legal expert slams SEC over considering ADA as a security asset

Bill Morgan became the latest crypto proponent, who criticised the American securities regulatory body over considering ADA as a security.

Ada is a native token of the Cardano blockchain network. Since the beginning, the Cardano founder Charles Hoskinson always supported only those initiatives for Cardano, which helps to maintain Cardano as a highly decentralised & regulated crypto asset under any jurisdiction, for which Hoskinson faced criticism several times. 

Last week, the United States Securities Exchange Commission (SEC) initiated charges against BinanceUS & Coinbase crypto exchanges, over the violation of alleged federal securities laws. 

https://t.co/akz08ZU9RP#American Securities Regulator #SEC Sues #Binance & Its CEO

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In the suit complaints against crypto firms, the SEC agency allegedly named a dozen of crypto assets, including ADA, as a crypto security token & alleged that sued Crypto firms violated Federal securities laws, as they provided unregistered securities offerings.

So far several crypto supporters shared their  opinion over the facts & evidence that the SEC agency used to prove the nature of crypto assets as a security asset. 

On 10 June 2023, Bill Morgan, a legal expert & crypto proponent, shared his opinion on the SEC’s claims over the nature of Cardano’s native coin ADA and said that the regulatory body’s claims are questionable.

Morgan said that the decentralised Cardano blockchain & the devs team behind Cardano is just like a smartphone & smartphone company, which always focuses on increasing the features, to remain in competition against other players.

Why does the SEC thinks that #ADA is a security.
Imagine you create a product and then you add some feature or capability that makes it better. This happened a lot in the history of smart phones. You announce this improvement and how it will increase demand for your product/1

— bill morgan (@Belisarius2020) June 10, 2023

According to Morgan, Cardano’s development work follows a similar path to smartphone manufacturing companies but strangely the SEC body considers Cardano under the securities law, while smartphone manufacturers are outside the SEC’s such assumptions.

Furthermore, Morgan said that improvement proposals by the Cardano project team to enhance the features & ability of the Cardano blockchain is only a part of efforts to make Cardano a competitor but the SEC body is considering such efforts as a part of securities laws. 

Few crypto Twitter users noted that Morgan’s opinion shows his positive attitude towards decentralized crypto assets and here we should not be happy with Morgan’s facts because there is a very big picture behind every crypto project & probably SEC body is considering only negative points, which help the agency to impose securities laws forcibly.

Read also: Former PayPal & Meta executive left everything to build for Bitcoin payment via the lightning network

Legal expert slams SEC over considering ADA as a security asset

 

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