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Friday, July 19, 2024

Cardano (ADA) Bulls Under Pressure Amid SEC Allegations

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Cardano (ADA), The SEC, Binance, Coinbase

  • SEC designated Cardano (ADA) as security.
  • ADA price declined by over 5% in the last 24 hours.

The US Securities and Exchange Commission’s (SEC) charges against high-profile companies such as Binance and Coinbase sent shockwaves through the cryptocurrency sector and left it surrounded by uncertainty. In addition, the leading cryptocurrency Cardano (ADA) has become a new victim in the SEC’s continuing hunt. In the lawsuit, the SEC labeled Cardano as a “security” along with other crypto tokens.

Certainly! The recent regulatory decision by the SEC has resulted in heightened pressure on cryptocurrency exchanges to either remove the affected tokens or risk facing regulatory consequences. Also, platforms such as Robinhood have already taken steps to delist these tokens. However, the second-largest cryptocurrency exchange, Coinbase, confirmed that it has “no plans to delist any of these assets,” as per the report.

SEC vs Cardano

The cryptocurrency and blockchain space is constantly evolving, and developments have occurred since then. The SEC has been actively monitoring the cryptocurrency industry and has taken action against specific projects. Also, individuals for alleged violations of securities laws, which it is asked to comply with applicable securities regulations,

It points out that several cryptocurrencies have faced scrutiny from the SEC in the past. Further, the “Cardano Foundation disagrees” with the recent classification of the ADA as a security under US law. Also, it anticipates continuing to work with regulators and policymakers to achieve these goals of legal clarity and certainty.

Despite the recent upward movement in other cryptocurrencies, ADA experienced significant underperformance in comparison to the broader market. This decline in ADA’s value has been associated with concerns related to potential security charges from the SEC, which has caused the negative sentiment surrounding ADA’s recent performance.

Cardano (ADA) Price Chart (Source: Tradingview)

At the time of writing, Cardano (ADA) traded at $0.326 with a 24-hour trading volume of $399 million, soaring about 41%. The ADA price dropped over 5% in a day and 12% in a week. But still, the altcoin is up around 33% year to date.

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