ADA developer denies SEC’s claim that the token is a security.

The development company IOG of Cardano dismissed claims by the U.S. Securities and Exchange Commission (SEC) that ADA, the native token of the blockchain, could be considered a security.

IOG stated that the SEC lawsuits filed earlier this week against crypto exchanges Binance and Coinbase, which included ADA in a list of crypto tokens that are considered securities, contained “numerous factual inaccuracies.” The company stated in a statement on Friday that the allegations would not affect IOG’s operations.

“Under no circumstances is ADA considered a security under U.S. securities laws. It never has been,” IOG stated. “Understanding how decentralized blockchains operate is a fundamental component in creating responsible legislation.”

IOG also stated that regulation through enforcement actions does not provide the necessary clarity or certainty that both the blockchain industry and consumers deserve.

The price of ADA fell 3% in the last 24 hours as tokens named in the SEC lawsuit extended their sell-off as traders reacted to regulatory risk.

The SEC also identified tokens issued by foundations and companies or tied to protocols Polygon (MATIC), Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager (VGX), Dash (DASH) and Nexo (NEXO) as securities.

Edited by Sheldon Reback.