In a series of tweets, Ripple\u2019s CTO, David Schwartz, and Cardano founder Charles Hoskinson have contested SEC\u2019s security classification of ADA in the ongoing regulatory crackdown.<\/p>\n
Hoskinson and Schwartz\u2019s objections to the SEC\u2019s stance were prompted by tweets from an attorney known for supporting XRP, Bill Morgan.<\/p>\n
It\u2019s important to note that the US SEC filed lawsuits against Binance<\/a> and Coinbase<\/a> on June 6 and June 5, alleging that both exchanges were trading unregistered securities.<\/p>\n In recent tweets<\/a>, Bill Morgan expressed his skepticism about the SEC\u2019s argument. He raised concerns about the validity of the SEC\u2019s claim, emphasizing that it overlooks the transformative nature of technological progress and innovation within the cryptocurrency industry.<\/p>\n Related Reading: Pepecoin Price Drops, Breaking Key Support Level \u2013 Further Downfall Ahead?<\/a><\/p>\n He compared the situation to how smartphones have evolved, with manufacturers constantly improving and adding new features to make them better.<\/p>\n Referring to a section of the SEC\u2019s complaint, he highlighted that the agency\u2019s argument is based on the notion that ADA is a security due to IOHK\u2019s efforts to enhance the Cardano blockchain and released blogs.<\/p>\n Meanwhile, Bill stressed that updating the community about product improvements does not make that product a security. He added that this principle should apply to the continuous progress made within the Cardano Blockchain.<\/p>\n Furthermore, the SEC\u2019s accusations mainly focus on trading ADA on Coinbase after it was listed in March 2021, rather than the initial coin offering (ICO) that occurred four years earlier, Morgan<\/a> added.\u00a0<\/p>\n Cardano founder Charles Hoskinson and Ripple\u2019s CTO David Schwartz have weighed in on Morgan\u2019s arguments, providing insight into the recent events. Hoskinson shed light<\/a> on the ADA\u2019s Initial Coin Offering (ICO) situation, providing much-need clarification to crypto enthusiasts.<\/p>\n He highlighted that the ADA\u2019s ICO took place in Japan and did not entail the direct selling of ADA tokens but instead utilizing vouchers, targeted marketing, and pricing in Yen and Bitcoin.<\/p>\n Notably, Americans did not participate in the ICO, and Charles confirmed that the only purchase made by US citizens were exclusively related to secondary sales that occurred four years after the ICO.\u00a0<\/p>\n However, this means that Americans acquired ADA solely through the secondary market and were not directly involved or connected to the original ICO in Japan.<\/p>\n In response to Hoskinson, Morgan added that based on the SEC\u2019s location and nature of the operation, its power does not cover the ICO.<\/p>\n He emphasized that, despite this reality, the agency claims that ADA \u201cbecame\u201d security solely because it became available on US-based exchanges. Morgan criticized the illogical nature of this argument.<\/p>\n Ripple\u2019s CTO, David Schwartz, also entered the conversation<\/a>, drawing attention to the SEC\u2019s perspective on ICO transactions and subsequent sales.\u00a0<\/p>\n According to Schwartz;<\/p>\n I guess their argument must be the ICO was a securities offering, just not an SEC issue because of no US nexus. But then I thought it was their position that secondary sales were exempt. The ICO transactions didn\u2019t take place on exchanges. So what\u2019s the investment contract?<\/p>\n Featured image from Pixabay and chart from Tradingview.com<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n In a series of tweets, Ripple\u2019s CTO, David Schwartz, and Cardano founder Charles Hoskinson have contested SEC\u2019s security classification of ADA in the ongoing regulatory crackdown.<\/p>\n Hoskinson and Schwartz\u2019s objections to the SEC\u2019s stance were prompted by tweets from an attorney known for supporting XRP, Bill Morgan.<\/p>\n It\u2019s important to note that the US SEC filed lawsuits against Binance<\/a> and Coinbase<\/a> on June 6 and June 5, alleging that both exchanges were trading unregistered securities.<\/p>\n In recent tweets<\/a>, Bill Morgan expressed his skepticism about the SEC\u2019s argument. He raised concerns about the validity of the SEC\u2019s claim, emphasizing that it overlooks the transformative nature of technological progress and innovation within the cryptocurrency industry.<\/p>\n Related Reading: Pepecoin Price Drops, Breaking Key Support Level \u2013 Further Downfall Ahead?<\/a><\/p>\n He compared the situation to how smartphones have evolved, with manufacturers constantly improving and adding new features to make them better.<\/p>\n Referring to a section of the SEC\u2019s complaint, he highlighted that the agency\u2019s argument is based on the notion that ADA is a security due to IOHK\u2019s efforts to enhance the Cardano blockchain and released blogs.<\/p>\n Meanwhile, Bill stressed that updating the community about product improvements does not make that product a security. He added that this principle should apply to the continuous progress made within the Cardano Blockchain.<\/p>\n Furthermore, the SEC\u2019s accusations mainly focus on trading ADA on Coinbase after it was listed in March 2021, rather than the initial coin offering (ICO) that occurred four years earlier, Morgan<\/a> added.\u00a0<\/p>\n Cardano founder Charles Hoskinson and Ripple\u2019s CTO David Schwartz have weighed in on Morgan\u2019s arguments, providing insight into the recent events. Hoskinson shed light<\/a> on the ADA\u2019s Initial Coin Offering (ICO) situation, providing much-need clarification to crypto enthusiasts.<\/p>\n He highlighted that the ADA\u2019s ICO took place in Japan and did not entail the direct selling of ADA tokens but instead utilizing vouchers, targeted marketing, and pricing in Yen and Bitcoin.<\/p>\n Notably, Americans did not participate in the ICO, and Charles confirmed that the only purchase made by US citizens were exclusively related to secondary sales that occurred four years after the ICO.\u00a0<\/p>\n However, this means that Americans acquired ADA solely through the secondary market and were not directly involved or connected to the original ICO in Japan.<\/p>\n In response to Hoskinson, Morgan added that based on the SEC\u2019s location and nature of the operation, its power does not cover the ICO.<\/p>\n He emphasized that, despite this reality, the agency claims that ADA \u201cbecame\u201d security solely because it became available on US-based exchanges. Morgan criticized the illogical nature of this argument.<\/p>\nProduct Improvements Doesn\u2019t Make it A Security, Said Bill Morgan<\/h2>\n
Cardano Founder And Ripple CTO Respond To Recent Developments<\/h2>\n
Product Improvements Doesn\u2019t Make it A Security, Said Bill Morgan<\/h2>\n
Cardano Founder And Ripple CTO Respond To Recent Developments<\/h2>\n