Cardano (ADA) Steps Closer to ETF as SEC Updates Binance Case

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As a seasoned financial analyst with over two decades of experience in the market, I have witnessed the evolution of digital assets and their regulatory landscape closely. The recent move by the U.S. Securities and Exchange Commission (SEC) to amend its complaint against Binance, potentially removing claims on Cardano (ADA), could be a significant turning point for this cryptocurrency.

The US Securities and Exchange Commission (SEC) plans to revise its initial accusation against Binance US, the American branch of the globe’s largest cryptocurrency exchange. The SEC aims to modify the complaint by requesting information regarding third-party crypto assets traded on Binance’s platform.

As an analyst, I would rephrase it this way: I propose that the SEC’s decision to delay action on the proposed rule change is aimed at avoiding a court ruling on whether tokens like Cardano (ADA), Solana (SOL), and Filecoin (FIL) should be classified as securities based on the Howey test. Previously, the SEC had maintained that these assets fall under the securities classification.

The SEC’s involvement with the Cardano token brought about some challenges, resulting in a partial halt to its advancement and recognition. If the regulatory claims against Cardano are resolved and lifted by the SEC, there’s a good chance that the ADA token will experience further growth and development.

Is Cardano ETF a real possibility?

One possibility: The anticipated approval and introduction of an ETF on the Cardano blockchain is a long-awaited development for many community members. With Ethereum and Solana already hosting similar financial instruments, this desire has grown even stronger. However, securing regulatory approval would be essential to realizing a Cardano ETF.

1. Regulatory certainty doesn’t guarantee success for ADA ETFs, as market demand and potential capacity play significant roles. Nevertheless, the impressive performance of the ETP on Cardano this year suggests a promising outlook in terms of demand.

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2024-07-30 16:31