SEC's Legal Battle with Kraken Targets Solana and Cardano

• Kraken Faces SEC Lawsuit Classifying Cardano and Solana as Securities
• SEC's Expanding Regulatory Focus: ADA, SOL and More
• Rebuttal from Founders and Developer Companies
• Price Fluctuations for ADA and SOL Following the Lawsuit
• Future Implications of the SEC Lawsuit

Kraken Faces SEC Lawsuit Classifying Cardano and Solana as Securities

The U.S. Securities and Exchange Commission (SEC) has initiated a new lawsuit against cryptocurrency exchange Kraken, classifying cryptocurrencies like Cardano (ADA) and Solana$104 5.03% (SOL) as securities. This marks a growing trend of regulatory actions targeting major exchanges and labeling various digital assets as securities.

SEC's Expanding Regulatory Focus: ADA, SOL and More

The lawsuit against Kraken signals an increased regulatory focus that goes beyond exchanges to specific cryptocurrencies. Cardano (ADA) and Solana (SOL) have been earmarked as securities in the SEC's latest legal move. Earlier in the year, similar actions were taken against Binance and Coinbase with allegations that tokens such as ADA, SOL, and Polygon$0.967 -3.65% (MATIC) were operating as unregistered securities. This reflects the continuous efforts to bring various aspects of the cryptocurrency market within SEC's regulatory domain.

Rebuttal from Founders and Developer Companies

In response to the SEC's assertions, Charles Hoskinson, founder of Cardano, clarified that ADA is not specifically targeted by any enforcement actions. Input Output Global (IOG), the company behind Cardano blockchain, and the Solana Foundation also denied the SEC's portrayal of ADA and SOL as securities. Despite these denials, the lawsuit adds to the growing regulatory uncertainty in the cryptocurrency field, causing investors and market participants to closely watch developments and assess their potential impact on implicated cryptocurrencies.

Price Fluctuations for ADA and SOL Following the Lawsuit

The market has been quick to respond to the legal scrutiny, influencing the price paths of ADA and SOL. ADA, following a brief pause, is showing determination to continue its upward climb, testing the key resistance at 41 cents. The strong support at 35 cents indicates that this level may not be revisited soon. Currently, ADA is trading at $0.3847 with minimal fluctuations. Its future trajectory relies on breaking this formidable resistance level.

Conversely, Solana's SOL saw a price jump to $68, marking its highest level since May 2022, notwithstanding the overall market volatility. The coin experienced significant resistance at this level. Despite high investor optimism for SOL, as reported by Santiment, the coin endured a 6% daily drop, trading at $55.74 at the time of writing.

Future Implications of the SEC Lawsuit

The lawsuit against Kraken, particularly tagging Cardano (ADA) and Solana (SOL) as securities, adds a new level of complexity to the regulatory landscape for cryptocurrencies. As legal proceedings progress, market participants will keenly watch the implications for ADA, SOL, and other digital assets, evaluating whether this will bring about more regulatory clarity or continue the ambiguity in the changing crypto regulatory framework.

Edited by Jonathan Stoker