The U.S. Securities and Exchange Commission is set to amend its original complaint against the U.S. wing of the world’s largest crypto exchange, Binance. The regulator intends to ask for the complaint to be amended with respect to third-party crypto assets represented on the Binance platform.
The move is designed to prevent the court from having to rule on the regulatory status of tokens such as Cardano (ADA), Solana (SOL), Filecoin (FIL) and many others. The SEC had previously argued that these assets fall under the securities classification under the Howey test.
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As you can see, the SEC also had claims on the popular Cardano token, which partially slowed down the asset’s progress and acceptance. If the regulator’s request is granted and the regulatory claims are removed from Cardano, it is possible that the ADA token will get its next round of development.
Is Cardano ETF a real possibility?
This could be, for example, the approval and launch of the ETF on Cardano. Many community members have been dreaming of such a thing, especially when Ethereum and Solana have already received or are about to receive similar instruments for themselves. Regulatory clarity would definitely be a brick in the wall for a potential Cardano ETF.
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However, this is all speculation, and regulatory clarity alone is not enough. A lot also depends on the potential capacity of the market for ADA ETFs. However, judging by the success of the ETP on Cardano this year, there seems to be no problem with demand.
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