After the XRP community finds recent comments by Cardano founder Charles Hoskinson attacking Ripple and XRP, Hoskinson clears his position in the SEC vs Ripple dispute. He believes most Layer-1 protocols aren’t securities due to their utility, decentralization, and passing the Howey Test. The real issue is the lack of a regulatory framework or laws for the SEC or the CFTC to effectively regulate the crypto market.
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.”
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 earlier mentioned that XRP and ADA projects have accomplished new milestones this year. Ripple reported 9x growth in ODL capabilities. Meanwhile, Cardano saw the deployment of the Vasil hard fork. ADA price is currently trading at $0.42.
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