Cardano Founder Clarifies His Stance in SEC vs Ripple Lawsuit

Cardano founder Charles Hoskinson cleared his stand on the SEC vs Ripple lawsuit after the XRP community found out about his recent comments attacking Ripple and XRP. He argues that most Layer-1 protocols are not securities because they are practical, decentralized and pass the Howey test. The real problem is that the SEC or CFTC lacks the regulatory framework or laws to regulate the crypto market effectively.

 

Cardano Founder Blames the Lack of Crypto Laws in the Legislative Bodies  

Cardano founder Charles Hoskinson in a series of tweets on October 8 cleared his stance on Ripple and XRP, as well as the SEC. After claiming earlier that the XRP community tries to invent a conspiracy of corruption between the SEC and Ethereum insiders, the XRP army criticized him for making comments on Ripple.

 

Charles Hoskinson considers most Layer-1 protocols aren’t securities due to their utility, decentralization, and passing the Howey Test.

 

“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.”

 

Hoskinson asserts that the crypto market isn’t resistant to rules and regulations. A market needs to be “stable, well-functioning, trusted actors monitored, and cartels examined.” Whereas, commodity regulation is based on principles, markets, and global adoption. Moreover, he says “commodities survive those who aggregate them.”

 

Similarly, Ripple has an ecosystem that will survive its leaders CEO Brad Garlinghouse, co-founder Chris Larsen, and CTO David Schwartz. In fact, an independent XRP army criticizing him is proof of its global adoption. Also, the XRP Ledger is decentralized and will run for decades.

 

Therefore, it is absurd to attack former and current government officials, Bitcoin for energy use or Chinese influence, and individual corruption that has no relation with the Howey Test. Moreover, implying Ethereum should be sued by the SEC doesn’t solve larger issues of cryptocurrencies.

 

Charles Hoskinson blames legislative bodies for being negligent in passing crypto laws and resolving issues. The regulators SEC and CFTC are just following existing laws due to the lack of bespoke crypto laws. The new laws will most likely come in 2023.

 

“Whether they enable the industry to thrive or badly harm its progress in America is entirely up to us. Our level of engagement. Our mutual collaboration. Our support for those trying to solve the actual problems.”

 

Also read: Cardano Price Prediction 2023 2025 2030: Can It Reach Ethereum?

 

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Ripple (XRP) Price Jumps over 8%

The XRP price has increased as the commodity considers Ripple’s win the case against the SEC as the Hinman documents become critical for the summary judgment. XRP jumped over 8% in the last 24 hours to hit a high of $0.52.

 

Charles Hoskinson mentioned earlier that the XRP and ADA programs have achieved new milestones this year. Ripple reported a 9x increase in ODL capacity. Meanwhile, Caldano witnessed the implementation of the Vasil hard fork.