XRP Lawyer Challenges Charles Hoskinson To Prove ADA’s Non-Security Status Amid SEC Scrutiny

Cardano founder Charles Hoskinson has gained significant attention amid increasing regulatory scrutiny in the digital asset space. Meanwhile, the U.S. Securities and Exchange Commission (SEC) has initiated a new enforcement action, this time focusing on Kraken, a prominent crypto exchange.

Talking about the recent lawsuit, a crypto enthusiast named Orlando.btc on the X platform, sheds light on the allegations, drawing parallels to the SEC’s previous actions against Coinbase. However, amidst the legal showdown, Cardano Founder Charles Hoskinson enters the fray with a robust response to accusations involving ADA.

Jeremy Hogan Asks Hoskinson To Defend ADA

The legal drama takes a twist as the SEC lists tokens, including ADA, as “crypto securities” traded on Kraken. A user on the X platform directs attention to ADA, insinuating that the SEC views it as an illegal security offering. Charles Hoskinson, known for his role in founding Cardano, responds to the user’s claims.

The XRP community, previously at odds with Hoskinson, appears ready to assist if he publicly apologizes for past remarks. However, Hoskinson, in turn, firmly denies any conspiracy involving Joe Lubin bribing the SEC to target XRP. This exchange between Hoskinson and the XRP community underscores the complexities and tensions within the cryptocurrency space, even among industry leaders.

For context, Cardano’s founder, Charles Hoskinson, has previously ignited tensions with the XRP community. Hoskinson took to the X social media platform, mocking Ethereum-related conspiracies, and stirring controversy.

Despite leaving Ethereum in 2014, he faces persistent connections to post-departure events. Notably, Hoskinson declared in 2022 that he’d refrain from addressing XRP-related queries due to harassment from the community.

Meanwhile, legal expert Jeremy Hogan, well-known for his pro-XRP stance, enters the scene with a challenging proposition. Hogan suggests that Hoskinson actively participates in the ongoing legal battle to prove ADA’s non-security status. This move comes amidst the broader context of increased legal scrutiny in the cryptocurrency industry.

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Kraken In The Regulatory Crosshairs

The SEC has once again wielded its regulatory hammer, filing a fresh enforcement action against Kraken. Echoing allegations similar to those against Coinbase, the SEC contends that Kraken operated as an unregistered broker-dealer, exchange, and clearing agency. Notably, Orlando.btc emphasizes the SEC’s focus on commingling funds, a tactic seemingly employed in response to recent developments involving FTX.

Meanwhile, the SEC alleges that Kraken commingled over $33 billion of customer assets and more than $5 billion of customer cash with its assets. This financial maneuver, as per the SEC, posed a “significant risk of loss” to customers and resulted in “material errors” in Kraken’s financial statements for 2020 and 2021.

However, Orlando.btc suggests that the SEC strategically emphasizes fund commingling to underscore the need for customer protection and business separation, particularly in comparison to licensed entities like BDs, exchanges, and clearing houses.

Also Read: Bloomberg Analyst Slams SEC For Implicitly Accepting Ethereum As Commodity