The ongoing regulatory action against the crypto industry by the US Securities and Exchange Commission (SEC) has attracted widespread condemnation by digital asset enthusiasts and critical players in the sector. After filing lawsuits against Binance and Coinbase, Charles Hoskinson, the founder of Cardano, has lent his voice amid the chaos following the regulator’s claim that the ADA token is an unregistered security.
Addressing The SEC’s Claim
Based on the legal proceedings initiated by the SEC against Binance and Coinbase, the regulator alleged that Cardano’s native token (ADA) and several other tokens are unregistered securities. According to the commission, three of Cardano’s founding firms, namely IOHK, the Cardano Foundation, and Emurgo, held ownership over the protocol, which suggests a lack of decentralization within the Proof-of-Stake (POS) chain.
The regulator added that Cardano chose to sell tokens by overlooking its unregistered securities category and neglecting essential facts. Despite the public denials from Cardano’s founding entities, IOHK and the Cardano Foundation, regarding the SEC’s accusations, Cardano founder Charles Hoskinson has taken it upon himself to address the allegations personally.
In a previous statement following the SEC’s announcement, Hoskinson indicated that the regulator may have a hidden agenda for integrating central bank digital currencies (CBDCs), which he dubbed “chokepoint 2.0.” He rallied his Twitter followers and the broader cryptocurrency community, urging them to join forces and stand against these perceived threats.
In light of ADA’s substantial 44% price drop following the SEC’s claims on June 6, the Cardano founder took another opportunity to respond to the allegations. Hoskinson argued that the SEC failed to consider that Cardano’s initial coin offering (ICO) occurred in Japan, not the United States.
During the ICO, redeemable vouchers were sold instead of ADA, which was exchanged for the Japanese Yen or Bitcoin. Furthermore, Hoskinson noted that the marketing efforts for Cardano were mainly focused on Japan, with no active participation from individuals in the US.
Reconciling With The XRP Community
Hoskinson has been in an ongoing dispute with the XRP community. As a controversial figure, Hoskinson has consistently attracted attention and criticism from members of the XRP community due to his stance on their legal battle with the US regulator.
With Cardano now facing complex regulatory challenges with the SEC, the founder has shown an interest in reconciling with the XRP community and has extended an olive branch for peace to reign. Furthermore, with the SEC’s lawsuits against prominent exchanges like Binance and Coinbase causing significant disruption in the crypto market, Hoskinson has taken it upon himself to urge the “fragmented” cryptocurrency community to put aside their disputes.
He wants crypto exchanges to come together to establish comprehensive rules and guidelines. Thus, regulatory bodies won’t misuse their authority and power.
After Hoskinson’s call for peace, some segments of the XRP community started resonating with his plea. However, not all members agreed to his appeal.
Those who disagreed pointed out what they perceived as hypocrisy on his part. They believed that Hoskinson only called for unity after the SEC labeled ADA as an unregistered security.
They added that his motives were driven by self-interest rather than genuine concern for the XRP community.
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