Cardano (ADA) Unlikely To Be Labeled A Security, Says Expert Dan Gambardello

In the midst of the ongoing scandal involving Binance USD (BUSD) and USD Coin (USDC), crypto expert Dan Gambardello of Crypto Capital Venture expressed optimism that Cardano’s native cryptocurrency, ADA, is unlikely to be labeled a security by the U.S. Securities and Exchange Commission (SEC).

Gambardello, a seasoned crypto investor and influencer, took to Twitter to explain his reasoning behind this belief. He cited two key reasons why he thinks ADA will not be considered a security by the SEC.

ADA will likely not be considered a security. 2 simple reasons:

1. #Cardano ICO was in Japan, not available to US investors.

2. A judge recently ruled in LBRY case that secondary sales of $LBC tokens were not securities. This sets an important precedent for things like $ADA.

— Dan Gambardello (@cryptorecruitr) February 14, 2023

Firstly, the Cardano ICO took place in Japan and was unavailable to U.S. investors. A recent judge ruling in the LBRY case determined that secondary sales of $LBC tokens were not securities. This sets a precedent for other cryptocurrencies like ADA.

What Lies Ahead For Cardano, The Debate Continues

However, some community members have raised concerns about Gambardello’s analysis. One pointed out that LBRY did not conduct an ICO, and its blockchain was fully developed and launched prior to the sale of any LBC tokens. It is not necessarily the case for Cardano, which is still in development.

In response, Gambardello acknowledged that the launch circumstances for ADA and LBC are different. However, he argued that the same two questions apply to both coins: did they launch as a security, and are secondary sales considered securities? He maintains that the answer to both questions for ADA is no.

Despite Gambardello’s optimism, others are not so convinced. Another podcaster pointed out that while ICOs are no longer common in the U.S., ADA will still have to be registered like every other altcoin.

1. ICOs were 2017. No one does them in the US anymore and that’s settled with the checkbook.

2. ADA will have to be registered just like every other alt coin.

3. They could screw with Cardano over the idea of promotion as Charles is on YouTube with regularity. It’s not right… https://t.co/NQOJqZJCOd

— Jungle Inc (@jungleincxrp) February 15, 2023

Additionally, there is a possibility that the SEC could take issue with Cardano’s promotion. This is because the project’s founder, Charles Hoskinson, is regularly featured on YouTube.

As the debate continues, how the SEC will ultimately treat Cardano and other cryptocurrencies remains to be seen. However, for now, Gambardello remains confident in his analysis and his belief that ADA will not be labeled a security.

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However, when it comes to Cardano (ADA) price action, currently, it is trading at $0.4058 with a 5% increase in the daily chart and 5.07% in the weekly chart. Additionally, the 24-hour trading volume is up by 10.87%, and the market cap by 5%.