Tuesday, February 20, 2024
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Cardano Creator Calls Out SEC To Distinguish between BTC, ETH, and ADA, XRP Community Reacts

Charles Hoskinson, the CEO of IOG, who created Cardano, has recently called out the Securities and Exchange Commission (SEC), to distinguish between Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA).

It can be recalled that the SEC classified Cardano (ADA) as a security in its lawsuit against Kraken, a crypto Exchange based in the United States. Meanwhile, the SEC had earlier identified ADA as a security in its lawsuits against Binance and Coinbase.

The SEC’s classification of other cryptocurrencies as securities, with the exemption of Bitcoin and Ethereum, didn’t sit well with Cardano’s founder.

During a live broadcast, Hoskinson reacted to the SEC’s statement and called on them to highlight the distinctions between BTC, ETH, and ADA.

Charles Hoskinson noted:

“What does that mean if it’s decentralized? Explain the f*cking difference between Bitcoin, Ethereum, Cardano, and the rest of the gang. Explain it to me like I’m five years old. Run the goddamn Howey Test and show me the difference between them.”

This security classification comes as a major blow, just as Cardano entered the Voltaire era, pushing it further into full decentralization. Hoskinson went on to express that the SEC has initiated costly legal battles against numerous crypto projects totaling hundreds of millions of dollars.

Michelle Nightengale (@BoostBizOnline), an XRP enthusiast on X, replied to his outburst, saying, “When it was XRP, he thought the XRP community was crazy and overreacting. Now that ADA is under attack, he suddenly cares.”

She highlighted that Hoskinson was right to be angry but described his outrage as extremely selective and hypocritical. She added, “The beautiful thing is that Ripple and $XRP are finally on the other side of a very long, expensive, and unjust lawsuit. Others still have to run that gauntlet. Good luck!”

Another user shared a similar sentiment, pointing out that Hoskinson was finally feeling the frustration of the XRP community during the Ripple-SEC lawsuit. The user also called for Congress to take charge by passing legislation, asking them to “lead from the front.”

John Deaton Weighs In

John Deaton, a prominent pro-XRP attorney, responded to Hoskinson’s recent comments. He empathized with Hoskinson’s frustration towards the SEC and urged the regulatory body to formulate regulations applicable to all ecosystems within the cryptocurrency industry:

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“Only Maxis will take issue with Charles Hoskinson’s outrage. I don’t see how anyone could not objectively understand the frustration. U.S. securities laws need to be coherent and consistently applied across all ecosystems.”

Hoskinson’s Stand on Cryptocurrencies

Further into the interview, Charles Hoskinson spoke about the reason cryptocurrencies exist. He said, “The entire reason cryptocurrency currency exists is not because somebody woke up and said, ‘Men, tokens on the internet are such a good idea.’ The entire reason cryptocurrencies exist is that we’re trying collectively to re-establish the social contract because the social contract is horrifically broken.” 

Although the Crypto Crossfire panel debated the biggest threat to Cardano in one of their recent episodes, the SEC might be Cardano’s biggest threat.


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Tobi Loba
Tobi Loba
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.
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