Cardano Founder Charles Hoskinson Clarified His Views on Ripple vs SEC Case

Cardano founder Charles Hoskinson recently shared his views on the ongoing battle between Ripple and the U.S. Securities and Exchange Commission (SEC).

Previously, Hoskinson said that the XRP community is trying to reveal a conspiracy theory of corruption between the SEC and Ethereum insiders. In a podcast with Tony Edwards, Hoskinson said: “The XRP community tried to invent this grand conspiracy that there was blatant corruption between the insiders at the SEC and Ethereum. I don’t honestly think that that’s the issue here”.  

This was in reference to Ripple persistently requesting access to the Hinman speech wherein the former SEC chair explained why Ethereum is not a security. Ripple argues that the same rules shall be applicable to its native cryptocurrency XRP.

However, Hoskinson’s comments didn’t go well the XRP community who lashed out at the Cardano founder. Soon after that, Hoskinson issued clarification in a series of tweets on October 8.

He stated: “I’ve always taken a position that most layer 1 protocols aren’t securities because it’s bizarre and senseless to consider something that offers utility, is decentralized enough to have operators and builders throughout the world, and survives its founders passing Howie.”

He further added that Ripple founders have built an ecosystem which will survive beyond them or anyone else for that sake. He added that the Ripple ledger will continue to run for decades adding value.

Taking a dig at the SEC, Hoskinson said: “The merits of the case should rest on the absurdity of applying securities regulation to something that has millions of independent participants in more than a 100 countries who cannot be controlled by any fiduciary of a single company”.

The United States has been working on getting crypto regulation in place. However, there’s some detonate on which of the two top agencies - SEC and CFTC - shall overlook regulations.

Hoskinson said that the U.S. government hasn’t done its job effectively in passing new laws and standards in regulating the crypto market. “Both the CFTC and the SEC are ill-equipped from law and policy to regulate the cryptocurrency space properly, so what they’re doing is they’re just trying to do it the way they think they can with the framework they have,” he added.