The SEC-Binance Debacle Is A Ploy To Promote CBDC – Hoskinson
The world’s largest crypto trading platform, Binance, is the latest target of the offensive approach from the US Securities and Exchange Commission (SEC). Accordingly, the SEC’s case against Binance has sent panic across the digital asset industry, with most top tokens shaken to their core.
Pushing A CBDC Agenda?
With exchanges such as Gemini, Genesis, and Kraken already facing regulatory scrutiny, Binance finds itself in hot water as the securities watchdog presents various damning allegations against it. According to some industry experts, this latest blow could spell the end for exchanges operating within the country.
Meanwhile, Cardano founder Charles Hoskinson suggests that the SEC’s aggressive stance may be motivated by an underlying objective: creating an easy pathway to promote its central bank digital currencies (CBDCs). The Cardano founder is the latest industry player to support Binance following the SEC’s move against the leading crypto exchange.
In a cautionary message to his dedicated Twitter followers, Hoskinson raised alarm bells about the rise of “chokepoint 2.0.” According to him, the SEC has a covert agenda to establish a partnership between prominent financial institutions and central banks, to control the financial lives of individuals by implementing CBDC.
Moreover, the CEO stated that the SEC’s legal action against Binance stems from more than just regulatory concerns. He added that there is a fundamental clash of political and philosophical ideologies between the regulator and the essence of cryptocurrencies.
Drawing attention to a concerning development, Hoskinson points to the activities of a minor, unaccountable group of individuals in dismantling vital principles such as self-sovereign identity, personal wallet ownership, and the fundamental freedom to exercise control over residents’ economic choices. He noted that this group had taken it upon themselves to strip these concepts away from the general populace, reserving them for a privileged and self-proclaimed “enlightened” few.
Painting a vivid picture of the potential risks of CBDCs, Hoskinson shared troubling instances where individuals could be unable to access their funds. He illustrated his point and cited the Chinese Government’s utilization of CBDCs to exert control over its citizens’ financial activities.
Thus, the authorities can control the leverage of these digital currencies and regulate their citizens’ financial lives.
Is Cardano (ADA) A Security?
After its high-profile lawsuit against Binance, the US SEC listed ten crypto assets it deemed a security. Thus, it fueled the narrative that the regulator is making moves to ensure that the US virtual currency industry becomes non-existent.
Some of the tokens listed include Cardano (ADA), Polygon (MATIC), Binance USD (BUSD), Cosmos (ATOM), Solana (SOL), Axie Infinity (AXS), Decentraland (MANA), The Sandbox (SAND), BNB (BNB) and COTI (COTI). In the document, the regulator presented several allegations marred by factual inaccuracies lacking necessary details.
Notably, one of the assertions made was that the three founding entities of Cardano, namely IOHK, The Cardano Foundation, and Emurgo, hold complete ownership over the protocol. However, the SEC’s accusation failed to acknowledge that Cardano’s governance is decentralized and has diverse stakeholders involved in its development and operation.
As part of its allegations, the SEC claim that Cardano’s token sales mimic a securities sale. Hence, its native asset (ADA) should be a security. Regrettably, the SEC failed to acknowledge that Cardano’s initial coin offering (ICO) was exclusively for the Japanese market and was not accessible to investors from the United States.
Following the allegations, the ADA token saw a significant drop of 8%, plummeting from $0.38 to $0.33 in the last 24 hours. Expectedly, the Cardano Foundation has dismissed the SEC’s classification of ADA as a security under United States laws.
Fedrick Gregaard, the foundation’s CEO, stated that the organization is open to more collaboration with regulators and policymakers to ensure clarity on the status of ADA.
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