Will Coinbase Delist Cardano (ADA) and Other 13 Altcoins? CEO Weighs In

Delisting digital tokens is becoming a hot topic in the crypto world, especially due to unclear regulations. The latest twist in this gripping saga comes from the prominent U.S. cryptocurrency exchange, Coinbase, as it strikes out 13 tokens, including the famed Cardano (ADA), from its platform. The twist?

The delisting saga finds its roots in an ongoing legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC). The SEC contends that these specific tokens, although forming only a small fraction of Coinbase’s extensive offerings, have failed to meet the required securities registration standards. Are we witnessing a power play, a clash of titans, or a daring bid for regulatory clarity? Let’s explore.

CEO Brian Armstrong Speaks Out

Brian Armstrong, the visionary CEO of Coinbase, recently sat down with Financial Times reporter Scott Chipolina to shed light on the unfolding situation. While acknowledging that the removal of ADA and other tokens is indeed a concerning prospect, Armstrong firmly believes that it will not significantly impact Coinbase’s revenue or its overall existence.

However, his main bone of contention lies in the regulatory scrutiny imposed on these tokens without the presence of a clear regulatory framework. He deems this action as unfair and unjustified, pointing out that it could potentially lead to negative market effects, such as increased selling pressure on undervalued tokens, and consequently, reduced market liquidity.

Read More: The Coinbase Drama: SEC’s Demands vs. Community Support – Who Will Prevail?

Cardano’s Developer Fights Back

In stark contrast to the SEC’s position, Cardano’s developer, Input Output Global (IOG), vehemently disagrees with the labeling of ADA as a security. They argue that the token should not be subjected to the same regulatory restrictions as traditional securities.

As a countermeasure against the SEC lawsuit, Coinbase has swiftly filed a motion seeking to have the case dismissed. Drawing parallels to a similar legal dispute involving Ripple, the company aims to bolster its argument and challenge the SEC’s stance.

Uncertain Future for ADA and Others

The fate of Cardano (ADA) and other tokens now hangs in the balance, as the delisting threat looms large. Armstrong’s remarks provide a glimmer of hope, suggesting that these tokens might still find a place on other exchanges, even if not on Coinbase. A positive resolution of the SEC lawsuit could potentially pave the way for these tokens to continue trading. However, at this juncture, the final outcome remains shrouded in uncertainty.

Having said that, investors holding Cardano (ADA) and other tokens must recognize the risks and seek advice from financial experts. ADA fell below $0.30, a 0.2% drop in 24 hours and 5% in a week, now at $0.293809. Recent weeks show nearly a 6% decline from the previous surge in value.