Reply to SEC from Algorand Foundation CEO

Staci Warden, CEO of the Algorand Foundation, responded to the SEC’s naming of ALGO as an investment contract in its lawsuit against the Bittrex exchange.

In a lawsuit filed against cryptocurrency exchange Bittrex on Monday, the SEC accepted six altcoins listed on the platform as investment contracts. One of them was Algorand’s crypto token ALGO. Staci Warden, CEO of the Algorand Foundation, issued a statement in response to the SEC. “The SEC recently sued Bittrex for allegedly violating the law,” Warden began. The CEO of the Algorand Foundation continued:

“ALGO is allegedly an example of investment contracts available for trading on Bittrex. We are not a party to the lawsuit and we do not intend to respond to every claim made in the official charge.“

Warden, who clearly stated that the Algorand Foundation believes that ALGO is not an investment contract under US law, said that they welcome clear regulatory guidelines for the advancement and growth of the entire ecosystem. Warden added:

“Our most important goal is to act in the best interests of our community, and we will continue to do so. We look forward to seeing what this dynamic community builds next in Algorand.“

In the SEC’s complaint, apart from ALGO, DASH, OMG, TKN, NGC, and IHT were also listed as investment contracts. The institution claims that token investors have “reasonable profit expectations,” meaning that assets must be considered investment contracts under US law.