In a pivotal move towards realizing a fully decentralized on-chain governance structure for Cardano, the Cardano Foundation has reaffirmed its unwavering dedication to advancing the goals of CIP-1694. This significant step comes alongside the foundation's announcement that it will actively participate in the upcoming Cardano Ballot event, wielding its considerable influence by voting with an 11.4 million ADA wallet. With Cardano's ecosystem thriving and evolving, the focus has unmistakably shifted towards the development of robust decentralized governance policies, and CIP-1694 holds the key to Cardano's long-term sustainability.
Meanwhile, the cryptocurrency exchange Kraken finds itself once again in the crosshairs of the U.S. Securities and Exchange Commission (SEC), as the regulatory body categorizes Cardano (ADA) and Solana (SOL) as securities in its latest lawsuit. Kraken's CEO, Dave Ripley, has responded resolutely to the SEC's allegations, vehemently disputing any wrongdoing and calling for a broader examination of regulatory policy-making in the United States. This development is part of a broader trend in which the SEC has identified various cryptocurrencies, including ADA and SOL, as securities, echoing similar actions taken against other major exchanges like Binance and Coinbase.
Cardano Foundation Commits to Decentralization with CIP-1694 Ballot Event
In a resolute declaration of its unwavering commitment to the advancement of CIP-1694 and the realization of a fully decentralized on-chain governance structure for Cardano, the Cardano Foundation has taken a significant step towards achieving this ambitious goal. In an official announcement, the foundation revealed its intention to employ its substantial 11.4 million ADA wallet to cast its votes in the upcoming Cardano Ballot event, marking a pivotal moment in Cardano's journey towards a decentralized governance system.
Over the past few years, the Cardano blockchain has undergone remarkable evolution, fostering a burgeoning ecosystem of users and applications. As the platform matures, the spotlight has now shifted towards the development of robust decentralized governance policies, which are essential for ensuring Cardano's long-term sustainability. Central to this effort is CIP-1694, an on-chain decentralized governance mechanism designed for Voltaire, the Cardano governance age. This mechanism is set to provide the final pieces of the puzzle required for the Cardano network to become entirely self-sustaining.
CIP-1694 carries profound implications for the future of Cardano's governance structure. Consequently, the forthcoming polling event centered around CIP-1694, facilitated by the "Cardano Ballot" developed in collaboration with Input Output and Intersect, represents a crucial litmus test for the progress made on the Voltaire governance journey thus far. The "Cardano Ballot" serves as a nonbinding poll that empowers the Cardano community to provide formal feedback on the on-chain governance process. Beyond merely casting votes, this feedback will play an instrumental role in shaping the governance and development priorities for 2024.
In a bid to actively contribute to this pivotal event, the Cardano Foundation has committed to vote "yes" using one of its wallets, which holds a substantial sum of 11,429,000 ADA. This demonstration of support underscores the foundation's dedication to ensuring a fair and inclusive governance system for Cardano.
Participation in the Cardano Ballot event adheres to a stake-based model, necessitating the use of a browser extension wallet (software wallet) that supports CIP-30. Additionally, participants must have staked a minimum of one Lovelace before Nov. 21 to be eligible to take part in this significant event. The polling for the Cardano Ballot event is scheduled to commence on Dec. 1 and will remain open until Dec. 11, providing the Cardano community with ample time to make their voices heard.
As the Cardano ecosystem continues to mature and expand, the Cardano Foundation's active involvement in the governance process exemplifies their commitment to ensuring that the platform's governance aligns with the principles of decentralization and community engagement. With CIP-1694 and the Cardano Ballot, Cardano takes another momentous step towards achieving its vision of a self-sustaining, decentralized blockchain network, setting a benchmark for the industry as a whole.
Kraken Faces SEC Lawsuit, Cardano and Solana Labeled as Securities
The cryptocurrency exchange Kraken finds itself entangled in yet another legal battle with the U.S. Securities and Exchange Commission (SEC). Notably, the SEC's most recent lawsuit has sent shockwaves through the cryptocurrency community by categorizing Cardano (ADA) and Solana (SOL), among other cryptocurrencies, as securities.
Kraken's Unyielding Response to SEC Allegations
In a bold response to the SEC's lawsuit, alleging unregistered securities exchange operations, Kraken's CEO, Dave Ripley, has taken a firm stance. Ripley vehemently refutes the SEC's claims and has gone public to assert Kraken's position. He emphasized that Kraken does not list securities, categorically denying any wrongdoing. Ripley pointed out that the lack of a clear registration path with the SEC and the presence of factual inaccuracies in the allegations underscore a broader issue of regulatory ambiguity in the United States' cryptocurrency landscape.
Ripley's call for Congressional Action
CEO Dave Ripley's public statement also contained a call for action from Congress to address the regulatory uncertainties surrounding the cryptocurrency industry in the United States. He believes that resolving these ambiguities is crucial for the industry's continued growth and innovation. Kraken, Ripley pledged, will actively support any efforts aimed at bringing clarity to the regulatory environment governing cryptocurrencies in the United States.
Kraken's Unwavering Commitment to Clients
Despite the looming lawsuit, Kraken is steadfast in its commitment to its mission and its vast clientele, both within the United States and around the world. The exchange assures its users that the lawsuit will have no immediate impact on the services it currently offers.
ADA, SOL, and Other Coins under SEC Scrutiny
The SEC's lawsuit against Kraken is part of a broader trend that involves the regulatory body categorizing various cryptocurrencies as securities. Earlier this year, the SEC filed similar lawsuits against other major exchanges, including Binance and Coinbase, alleging that tokens such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) are unregistered securities.
Cardano's Founder Responds
Charles Hoskinson, the founder of Cardano, has sought to clarify the situation regarding ADA amidst rumors of increased SEC scrutiny. Hoskinson stated that there has been no specific enforcement action targeting ADA. Input Output Global (IOG), the developer firm behind the Cardano blockchain, also refuted the SEC's claims, reiterating that ADA is not a security.
Solana Foundation Denies SEC Claims
Similarly, the Solana Foundation has rejected the SEC's assertion that Solana (SOL) should be considered a security. This collective pushback from prominent players in the cryptocurrency space reflects the industry's growing concern about regulatory overreach and its determination to protect the decentralized nature of cryptocurrencies.
The outcome of the SEC's lawsuit against Kraken and the broader implications for the cryptocurrency market remain uncertain. However, it is evident that this legal battle has reignited the debate surrounding regulatory clarity and the classification of cryptocurrencies, with industry leaders like Kraken, Cardano, and Solana vowing to defend their positions in the evolving regulatory landscape.
Price Overview
Daily chart for ADA/USDT (Source: TradingView)
ADA started today’s trading session off with a 3.56% gain. Subsequently, the altcoin was changing hands at $0.3698 at press time. Despite this strong start to today’s session, the cryptocurrency was still at a loss on the 24-hour timeframe. This is mainly due to the 6+% drop that it suffered yesterday off the back of the Kraken lawsuit and its classification as a security.
