- The SEC has labeled Cardano as an unregistered security.
- The SEC’s claims have put pressure on exchanges to delist Cardano.
- A Cardano proposal could address the SEC’s concerns.
The US Securities and Exchange Commission’s (SEC) classification of Cardano and other emerging tokens as unregistered securities in its high-profile case against Binance has sent shockwaves throughout the crypto industry, leaving it enveloped in doubt and uncertainty.
The regulator’s decision has put a lot of pressure on exchanges to either delist the tokens or face the hammer. Some platforms like Robinhood have already taken steps to delist the tokens, and other exchanges will likely follow suit.
With Cardano’s fate in the US hanging by a thread, its upcoming CIP-1694 update could address the SEC’s concerns by transforming the proof-of-stake (POS) chain into a protocol that aligns with SEC’s regulatory…
