Cardano (ADA) Token No Longer Considered a Security by the SEC

Cardano price continues to struggle in the volatile crypto market as heavy sell pressure weighs it down. On-chain metrics do not support a bullish outlook for the asset

The legal status of several cryptocurrencies, including ADA, has been a subject of interest and speculation within the crypto community. In a recent development, the U.S. Securities and Exchanges Commission (SEC) has reportedly clarified that the Cardano (ADA) token is not classified as a security by the agency.

This news emerged following a meeting between SEC officials and representatives from the Blockchain Association, a trade group that counts several crypto companies among its members. During the meeting, the SEC representatives stated that ADA, along with other digital assets such as XRP, is not currently on the agency's list of securities.

However, the SEC officials emphasized that the agency's stance on the legal status of cryptocurrencies can change over time, and the agency will continue to monitor and assess the market.

This clarification from the SEC is significant for ADA and its community, as it provides some regulatory clarity regarding the token's status. It also comes amid increasing scrutiny of cryptocurrencies by U.S. regulators, with the SEC having taken several enforcement actions against crypto companies and executives.

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