Cardano Founder Charles Hoskinson

Recent statements by Cardano founder Charles Hoskinson disparaging Ripple and XRP have been discovered by the XRP community; Hoskinson now clarifies his position in the SEC vs. Ripple issue. Because of their practicality, decentralisation, and passing of the Howey Test, he doesn’t consider most Layer-1 protocols to be security. The fundamental problem is that neither the SEC nor the CFTC have the legal authority they need to regulate the cryptocurrency market.

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When asked about the lack of crypto laws, Charles Hoskinson pointed the finger upon legislative bodies.

Cardano’s creator, Charles Hoskinson, clarified his position on Ripple, XRP, and the SEC in a series of tweets on October 8. The XRP army slammed him for making comments about Ripple after he claimed earlier that the XRP community seeks to invent a conspiracy of corruption between the SEC and Ethereum insiders.

Because of its practicality, decentralisation, and ability to satisfy the Howey Test, Charles Hoskinson does not believe that most Layer-1 protocols qualify as securities.

It has always been my position that most layer 1 protocols are not securities because it seems absurd to classify something as a security if it provides some sort of useful service, is decentralised enough to have operators and builders all over the world, and survives the deaths of its founders like Howie.

Hoskinson claims the cryptocurrency market can be regulated like any other. For a market to be successful, it must be “stable, well-functioning, monitored for trusted individuals, and inspected for cartels.” Regulation of commodities, on the other hand, relies on universally accepted norms and market forces. What’s more, he claims that “commodities survive those who aggregate them.”

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In a similar vein, CEO Brad Garlinghouse, co-founder Chris Larsen, and CTO David Schwartz have built an ecosystem that will continue to thrive long after they leave the company. An autonomous XRP army that has publicly criticised him demonstrates the currency’s widespread use around the world. The XRP Ledger is also decentralised and will continue operating for a long time.

Thus, it is ridiculous to criticise current or former government leaders, Bitcoin for its energy use or Chinese influence, or an individual’s corruption if it has nothing to do with the Howey Test. Also, stating that Ethereum should be sued by the SEC does little to address the systemic problems with cryptocurrencies as a whole.

As Charles Hoskinson sees it, lawmakers have been slack about enacting crypto laws and addressing related problems. Due to the lack of bespoke crypto regulations, regulators like the SEC and CFTC are essentially adhering to the existing legal framework. A new legal framework is expected in the year 2023.

It is totally up to us to decide whether they help the sector flourish or severely hinder its advancement in the United States. How involved we are in the process. Joining forces for the common good. We back the people who are working to address the real issues.

The Value of XRP Increases

Since the Hinman documents are now essential for Ripple’s summary judgement, the price of XRP has risen as investors anticipate the company will prevail in its lawsuit against the SEC. Almost the past day, XRP has gained over 8%, reaching a 24-hour high of $0.52.

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Charles Hoskinson has already noted that this year marks a number of significant achievements for the XRP and ADA projects. Ripple said its ODL capabilities increased by a factor of 9. In the meanwhile, Cardano witnessed the launch of the Vasil hard fork. This morning, ADA opened at $0.42 and is now trading there.

Source: Google Trend

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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