Cryptocurrency exchange Kraken is being sued by the US Securities and Exchange Commission (SEC) for selling ‘securities’ in a case also involving Cardano (ADA) and Solana (SOL). A similar action was taken against leading exchanges in the industry such as Coinbase and Binance.
The SEC’s lawsuit against Kraken points to a regulatory framework that extends beyond exchanges to certain cryptocurrencies. Cardano (ADA) and Solana (SOL) in particular are now categorized as securities according to the SEC’s recent lawsuit.
Earlier this year, the SEC took similar legal action against Binance and Coinbase. ADA claimed that tokens such as SOL and Polygon (MATIC) were operating as unregistered securities. This broader regulatory push reflects ongoing efforts to bring various aspects of the cryptocurrency market under the SEC’s regulatory purview.
In response to the SEC’s allegations, Cardano founder Charles Hoskinson underlined that none of the enforcement actions specifically target the ADA. Similarly, Input Output Global (IOG) and the Solana Foundation have publicly rejected the SEC’s characterization of ADA and SOL as securities. However, ongoing litigation has become another factor that increases regulatory uncertainty in the cryptocurrency space.
This development in the case also affected the prices of ADA and SOL. After a brief pause, Cardano tested the key resistance at $0.41, showing determination to continue the uptrend. However, strong support at $0.35 suggests this level may not be revisited anytime soon. ADA’s future trajectory depends on a breakout of this formidable resistance level and it is currently trading at $0.3847 with minimal fluctuations.
solana Despite the general fluctuation in the market, it rose to $68 and reached its highest level since May 2022. However, it encountered significant resistance at this level. According to Santiment, investor optimism for SOL is quite high. However, the altcoin price recorded a daily decline of 6%.