SoFi bank holds Bitcoin, Ethereum, Dogecoin, & Cardano. People are now questioning how the Bank will comply with the American financial regulator SEC, as Cardano is an unregistered security.
The crypto & blockchain sector is evolving in the US jurisdiction under the grey region. No doubt that the US is a very big market for any new startup & sector or digital innovation but here this is a bitter truth that no crypto-dedicated law has been introduced by the American regulators. Just a couple of months ago, the US Securities and Exchange Commission (SEC) sued top Crypto exchanges e.g. Binance, Coinbase, Bittrex, and Kraken. Through the suits, the SEC body mentioned almost every crypto asset as an unregistered security, including Cardano (ADA).
On 9 Aug 2023, San Francisco-based SoFi bank disclosed that its subsidiary SoFi Digital Assets held $170 million worth of crypto assets.
These crypto assets holding include $82 million in Bitcoin (BTC), $55 million in Ethereum (ETH), $5 million in Dogecoin (DOGE), and $4.5 million in Cardano (ADA).
SoFi Digital Assets holds these crypto assets on behalf of customers. Now it will not allow investment in Ada coin, as the SEC body mentioned this crypto token as an unregistered security in several suits.
Many crypto experts shared their opinion on such US Investor’s activity and noted that Cardano is really a strong project under the purview of people and probably they will continuously invest in this crypto project via other methods.
Recently Bitstamp crypto exchange decided to suspend trading for some flagship crypto assets, including ADA & Polygon (Matic) because of the SEC’s claims that all these assets are unregistered security tokens.