Dan Gambardello, crypto expert at Crypto Capital Venture, said the SEC’s cardano (ADA) discussed the possibility of describing its entity as a security.
Ongoing problems with Binance USD (BUSD) and USD Coin (USDC) securities statuses will not lead to similar issues for Cardano’s native cryptocurrency ADA. Dan Gambardello stated a precedent and a fact to substantiate his point.
ADA will likely not be considered a security. 2 simple reasons:
one. #Cardano ICO was in Japan, not available to US investors.
NEWS CONTINUES BELOW2. 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
NEWS CONTINUES BELOW
The first ICO (initial offering) for the Cardano native token was held in Japan. US investors have been blocked from participating in this ICO. The protocol raised over $62 million from $0.0024 per ADA in 2016.
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Therefore, US regulators cannot accuse Input Output Global, EMURGO and other firms involved in the development and marketing of Cardano (ADA) of offering unregistered securities.
Gambardello’s famous LBRY v. Reminded me of the SEC case. In this case, the US judge ruled that secondary sales of LBC tokens could be considered securities sales. Gambardello takes the same view in this context.
Also, Ripple Inc. and the SEC over XRP’s security status has been going on for more than two years with no clear winner. If Ripple loses, its founders will be blamed for the $2 billion unregistered securities offering.
At the same time, approved “non-securities” status is very rare in crypto, as we reported on Koinfinans.com. Polkadot (DOT) was the only token to achieve this in 2022.