According to Hoskinson, the SEC’s ongoing attack on crypto businesses has nothing to do with securities regulations and is instead motivated by politics.
Charles Hoskinson, creator of the cryptocurrency platform Cardano, is certain that the U.S. Securities and Exchange Commission (SEC) would not go after ADA, the project’s native coin.
In the past, Coinbase CEO Brian Armstrong said that the SEC has requested that the exchange delist all tokens other than Bitcoin because of their status as securities.
The SEC has been in a legal dispute with Ripple Labs for the last three years over the same accusation, with Ripple Labs maintaining its position that XRP is not a security. However, the court hearing over the case recently determined that sales of XRP to institutional investors indeed constitute securities.
Hoskinson assured Corey that the SEC’s “somewhat antagonistic towards Cardano” and other blockchains’ stance had not affected ADA despite his earlier comments to the contrary.
Being precise in our terminology is crucial. Just because someone claims something is a security in a lawsuit against an exchange doesn’t mean they can go against Cardano. The enforcement event has not occurred. But if that were to happen, you know the details would be different, and that’s not the case here,” Cardano’s creator explained.
Hoskinson elaborated by saying the SEC’s ongoing attack on crypto companies is entirely political and unrelated to securities legislation.
The CEO of Cardano claimed that a U.S. political party that has taken substantial funding from SBF is trying to prove it is not corrupt by shifting from bipartisan cooperation with other parties in the creation of crypto regulations to accusing everyone of being a bad actor and trying to throw them in jail.
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