Crypto lawyer Bill Morgan stated that the allegations leveled by the Securities and Exchange Commission (SEC) against Cardano’s ADA are made up of weak facts and arguments. The allegations were made as part of the SEC’s recent lawsuit against Binance, which named several cryptocurrencies, including ADA, as securities.
Morgan took to Twitter earlier today to share a tweet from Cardano community member Chris O:
That was my impression. Of all the facts alleged about the several so-called digital asset securities in the SEC cases against Wahi, Bittrex and Binance the facts against #Cardano look the weakest. https://t.co/tsjlonEJ7P
— bill morgan (@Belisarius2020) June 6, 2023
After reading the lawsuit filed by the SEC against Binance, Chris O concluded that the specific complaint that concerned Cardano’s native token ADA was “extremely weak”. According to the Cardano community member, the securities regulator completely disregarded the fact that ADA’s initial coin offering (ICO) took place in Japan.
Since ADA’s ICO was done in Japan, the tokens were unavailable to United States-based crypto investors. Chris O also highlighted that the SEC had wrongfully claimed that Cardano’s three founding entities were a centralized oligarchy that owned the protocol. The SEC was referring to the Cardano Foundation, Input Output (IOHK), and EMURGO.
The Cardano community member accused the SEC of ignoring the thousands of stake pool operators (SPO) that actually ran the protocol. He added that Cardano’s decentralization would be the “ultimate” defense against the securities regulator’s allegations. Morgan agreed with Chris O’s take on the matter and added that of all the facts alleged about the crypto securities in the SEC’s previous cases, the facts against Cardano appeared the weakest.
Cardano founder Charles Hoskinson recently shared his take on the SEC’s decision to name ADA as a security in the lawsuit against Binance. According to Hoskinson, the lawsuit was the next in a series of steps to implement chokepoint 2.0 in the United States to end crypto innovation in the country. He alleged that the SEC’s end goal was to facilitate an agenda-based CBDC partnered with a handful of big banks in the country.
