Cardano (ADA) has found itself in the midst of a regulatory storm as two prominent exchanges in the United States have attracted the attention of the Securities and Exchange Commission.
The SEC has not only focused on these exchanges but has also classified certain altcoins, including Cardano (ADA), as securities. Consequently, ADA has been directly affected by the recent scrutiny imposed by the SEC.
In response to the SEC’s statements, the team behind Cardano has issued a statement expressing their disagreement with the regulatory body’s position. However, it appears that the consequences of the SEC scrutiny are starting to manifest.
The latest reports indicate that specific Cardano trading pairs will be delisted from Huobi, a development that has very little impact on the price of ADA.
Market Reaction And Impact On Cardano (ADA) Price
Despite the recent news of specific ADA trading pairs being delisted, the market response has been relatively subdued. The current price of ADA on CoinGecko stands at $0.27, reflecting a decline of 1.8% in the past 24 hours. However, it is worth noting that this price movement cannot be solely attributed to the delisting announcement.
The removal of the ADA trading pair from Huobi has had a minimal impact on the overall price of the token. Despite concerns surrounding regulatory scrutiny and delisting actions, Cardano has managed to maintain a crucial price level. It demonstrates resilience in the face of adverse developments and suggests that market participants are not reacting significantly to the specific delisting news.
ADA downhill price movement. Source: CoinMarketCap
When considering the broader perspective, Cardano’s price decline of 0.9% over the past seven days is relatively marginal. This indicates that, despite the delisting news and regulatory scrutiny, the market sentiment towards ADA has remained relatively stable.
Investors and traders have shown confidence in the token’s ability to withstand challenges and maintain its value, even in the face of negative developments.
ADA market cap currently at $9.6 billion. Chart: inew.news
Huobi Removes ADA Trading Pairs As Part Of Strategic Decision
Huobi, in an official statement, has announced the discontinuation of various trading pairs, including ADA/USDD, starting from 8: 00 a.m. (UTC) on June 29.
The reason provided by Huobi for this action is their dedication to improving the trading experience for users. However, it is important to note that trading ADA with USDT and Bitcoin (BTC) will remain unaffected.
By considering the recent delisting by Huobi in the context of previous actions taken by the SEC, it becomes evident that ADA is dealing with a challenging regulatory landscape.
These developments raise questions about the future classification and regulatory treatment of ADA within the cryptocurrency market.
Featured image from Hong Kong Lawyer