- Cardano founder stated that he believes XRP is a Commodity not a Security.
- His belief showed a subtle difference on his stand in the SEC vs Ripple case after being pressured by some XRP disciples.
On October 8, 2022 Charles Hoskinson wrote in a thread of Tweets that “Recently, the most surprising thing to me has been how hard I’m being hit by some on the XRP side for my recent comments on their SEC issues.”
He added that Ripple’s utility is decentralized enough to have operators and builders worldwide, and survives its founders, which disqualifies it as a security. Therefore it was “bizarre and senseless” for the SEC to raise the Howey test to prove its case against Ripple.
Hoskinson hints that the SEC case would fail as he said “The merits of the case should rest on the absurdity of applying securities regulation to something that has millions of independent participants in more than 100 countries who cannot be controlled by any fiduciary of a single company.”
He showed his keen interest in the Ripple case in 2020, blamed regulators for shirking their responsibilities, and describing their behavior as the “root cause of our industry’s issue.” He said that “The legislative branch has been negligent in its duty to pass new laws to resolve the consequences of new technology. Regulators have to follow the law.”
The well-defined regulations are a must for crypto industry, as without proper regulations it is left at the behest of courts and state agencies such as the SEC and CFTC, who are divided on who should control the sector. As Hoskinson mentioned, this outrage can only be solved through the enactment of bespoke regulations or the application of existing rules as regulators “see fit regardless if it makes sense or is fair.”
On the other hand, according to him, CFTC could be used to police the crypto industry since they are principles-based, market-oriented, and global by nature. And, “commodities survive those who aggregate them,” as he further added.
The Old-Battle of Ripple and The SEC
At the same time, with the hope of Ripple winning against the SEC in the ongoing case growing, XRP continues to grow. As per the data sourced from on chain analysis firm Santiment, this week has seen the network’s highest number of new addresses created in three months.
In spite of dipping by over 85% in June, the price of XRP has already recuperated by over 70%, breaking key resistance levels which could be crucially important to the cryptocurrency surging towards its all-time highs. XRP is currently trading at $0.51 after a 0.40% down in the past 24 hours.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.