Is ADA coin considered a security?


#1

Does the United States government consider ADA coin to be a security?

I ask because I wanted to use some funds from a personal loan to purchase some additional coins but noticed in the fine print that the funds from the loan can not be used to purchase securities.

Has there been any official announcement. I have heard both yes and no answers and am hoping someone here can help clarify.

Thank you


#2

Only the SEC can answer that question and to my knowledge they have not mentioned Cardano specifically at this time. I personally believe it is not due to the fact that they have mentioned that Ethereum is not and Cardano is very similar in terms of function. Cardano was also first created outside of US jurisdiction and not available to US citizens at that time. On the other side one of the key tests is decentralization and Cardano is not yet decentralized although it plans to be by the end of Q1 next year.

I do feel compelled to say using borrowed money to invest in cryptocurency is generally considered to be unwise but I am not a financial advisor.


#3

Thank you Donnabaseball for your response, it has helped with my decision.

Much appreciated.


#4

That’s a nice touch Donny, I mean that. Too many people on clickbait sites, FB and Reddit screaming nonsense trying to drag newbies into donor pools to cut their own losses. Nice to see some genuine well meant advise in this space too.


#5

If you do plan on investing then atleast wait for
now as you will be able to pick ada up for alot cheaper in the coming months.


#6

I’m waiting for the same answer!