This Is Why the SEC May Never Sue Cardano for Being a Security

The post This Is Why the SEC May Never Sue Cardano for Being a Security appeared first on Coinpedia Fintech News

Cardano is among the projects with robust fundamentals and a fine price trajectory. The native token ADA also follows a calculated approach, letting the bears have complete control over it. Besides, the growing crypto adoption has even attracted the authorities, who have kept a close watch and screwed the platforms accordingly. 

Since the SEC sued Ripple, many believed the agency would not relent and would expand its reach to other platforms as well.

The recent Paxos crackdown substantiated the claim by creating the illusion of who might be next. However, Cardano may certainly not face the SEC’s heat as the platform may not come under US jurisdiction. Therefore, one of the top analysts, Dan Gambaedello, lists two prominent reasons that could support the claim. 

ADA will likely not be considered a security. 2 simple reasons:

1. #Cardano ICO was in Japan, not available to US investors.

2. A judge recently ruled in LBRY case that secondary sales of $LBC tokens were not securities. This sets an important precedent for things like $ADA.

— Dan Gambardello (@cryptorecruitr) February 14, 2023

Cardano’s ICO was held in Japan and hence cannot be considered a security under US law. However, despite the fact that the recent crackdown on LBRY was also referred to as being launched without an ICO. Moreover, LBRY’s blockchain was fully developed and launched prior to the sale of its native tokens. Yet the platform faced the SEC’s crackdown, which raised concerns for Cardano. 

Addressing the concern, the analyst said, 

“Agreed launches are different. Still 2 question for each coin. 1. Launch a security? 2. Secondary sales a security?

ADA & LBC launch circumstances are different, but answer is same. Namely, how could ICO that took place in Japan be considered a security under US law? It can’t,”