Charles Hoskinson, the inventor of Cardano (1), clarifies his position in the SEC vs. Ripple controversy (2) when the XRP community discovers previous statements he made criticizing Ripple and XRP.
What are his thoughts on this dispute?
He thinks that since most Layer-1 protocols are useful, decentralized, and satisfy the Howey Test, they aren't securities. The SEC or CFTC cannot effectively control the cryptocurrency market since no legal or regulatory structure exists. Charles Hoskinson Charges Lack of Crypto Laws on Legislative Bodies. Charles Hoskinson, the inventor of Cardano, clarified his position on Ripple, XRP, and the SEC in a series of messages on October 8th. He made this statement,
What is extraordinary to me is that the people who tweet this stuff actually believe it regardless of the evidence given. It's basically like religious beliefs. Every year, we have moved mountains together, but he can't see any of it. I wonder what causes it ?
What happened after?
The XRP (3) community chastised him for making statements against Ripple after he had already asserted that the XRP community seeks to fabricate a plot of corruption involving the SEC and Ethereum insiders. Since most Layer-1 protocols are useful, decentralized, and satisfy the Howey Test, according to Charles Hoskinson, they aren't securities. Hoskinson says the cryptocurrency sector is not immune to laws and regulations. Stable, well-functioning, trusted actors watched, and cartels analyzed are all requirements for a market.
Contrarily, commodity regulation is based on standards, markets, and widespread acceptance. Additionally, he asserts that those who accumulate goods live. The ecosystem of Ripple, led by CEO Brad Garlinghouse, co-founder Chris Larsen, and CTO David Schwartz, is also resilient. The fact that an independent XRP army is denouncing him shows how widely used it is. The XRP Ledger is also decentralized and has a long lifespan. Attacking current and past government officials, Bitcoin for energy consumption or Chinese influence, and personal corruption that has nothing to do with the Howey Test is thus ludicrous.
Furthermore, suggesting that the SEC should sue Ethereum (4) doesn't address the bigger problems with cryptocurrencies. Charles Hoskinson accuses legislative entities of failing to enact crypto legislation and address problems. Due to the absence of specialized crypto rules, the regulators SEC and CFTC are just following existing laws. Most likely, in 2023, the new legislation will be implemented.
What is the current situation: Ripple vs SEC
As the commodities evaluate Ripple's victory in the action against the SEC and the Hinman papers become crucial for the summary judgment, the price of XRP has risen. In the previous day, XRP increased by more than 8%, reaching a high of $0.52. Charles Hoskinson has said that this year saw new milestones for the XRP and ADA programs. The ODL capabilities of Ripple have increased nine times. Cardano saw the installation of the Vasil hard fork in the background. The price of ADA is present at $0.42.