Top Legal Expert: SEC Tagging Cardano (ADA) a Security is a Weak Claim

While the new lawsuit involving the United States Securities and Exchange Commission (SEC) and two top leading crypto exchanges, Coinbase and Binance, which implicated Cardano continues to gather momentum, pro-crypto Attorney Morgan faulted SEC’s Cardano (ADA) security status claims, tags SEC’s assertion, flimsy.

Morgan’s Assertion To The Facts Presented By SEC Against Cardano

In a recent tweet on his official Twitter handle, the pro-crypto lawyer noted that all facts presented by the United States regulatory commission to classify ADA as a security asset would go down as one of the most feeble controversies the United States regulatory body had ever proposed. Morgan noted the cases against Wahi, Bittrex, and Binance are still tenable compared to Cardano’s claims.

Read Also: Cardano (ADA) Price Prediction as Total Value Locked Surges Nearly 300% in 2023

Morgan’s outburst got fuelled by a tweet from a Cardano enthusiast, Chris O. Chris shared a tweet describing SEC’s argument as extremely weak, and Morgan reacted in a manner that corroborated Chris’ assertion. “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 looks the weakest,” Morgan tweeted.

Read Also: Charles Hoskinson Unveils Cardano Vision for the Summer, Says ADA Could Surpass Other Top Cryptos

Chris’ Basis For Tagging SEC’s Claims Against XRP As Weak

Per Chris, SEC went wrong to mention ADA’s Initial Coin Offering (ICO), held in Japan, which prevented crypto investors from the United States from actively participating in the event during the coin’s initial offering.

To corroborate his points further, Chris pointed out that the SEC also failed to note that the Cardano protocol is run by thousands of stake pool operators (SPO) globally, maintaining that Cardano (ADA) decentralization model will always protect the digital asset from being tagged as a security asset.

Chris tweeted, “#Cardano community, having read the specific complaint relevant to $ADA, imho it is an EXTREMELY weak argument made by the SEC. They completely omit the ICO that took place in Japan & not available to US investors. They claim the 3 founding entities are a centralized oligarchy that owns the protocol, making no mention of the THOUSANDS of SPOs that run the protocol. As always our decentralization will be the ultimate shield for us. Ignore the FUD.”

 

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