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- 1 Cardano founder Charles Hoskinson feels the SEC might not go after Cardano (ADA).
- 2 He also said the recent SEC’s action has a hidden political agenda.
Cardano founder bashed SEC’s regulatory crackdown on crypto, claiming it to be political and why it would never touch ADA. The recent actions of the Securities and Exchange Commission (SEC) against the crypto industry are not painted in pleasing colors. Experts also hint that such actions could force these businesses to move offshore.
Charles Hoskinson’s Views on Why SEC Would Never Touch ADA
During a recent online interview, Hoskinson spoke about the current regulatory crackdown. When asked why he thinks ADA Cardano’s native token is invincible in the scenario, he said the asset was already mentioned as a security in the lawsuit against a crypto exchange.
The crypto industry was shocked when the SEC filed lawsuits against the world’s biggest crypto exchange and Coinbase for violating the United States securities laws. At the time, a list of 12 tokens was released, including Cardano (ADA), Binance Coin (BNB), Polygon (MATIC), Solana (SOL), and others. The assets mentioned in the list were securities and be treated as such.
SEC also ordered various exchanges to delist all the tokens except Bitcoin because they are classified as securities. A similar issue was behind the infamous SEC vs. Ripple case; the agency tried to rebrand XRP as a security. But Ripple partially won the case in 2023 after a judge’s partial ruling said that XRP is not a security.
After the biggest crypto Black Swan event, the FTX-saga, the regulatory crackdown by the SEC on the crypto industry increased by 183%. Interestingly, the agency has not yet touched Cardano. Charles Hoskinson feels that the agency might not come knocking at their doors anytime soon.
“It’s very important to be accurate with our language. There’s no coming after Cardano just because in a lawsuit against some exchange, they said that something is a security. There’s been no enforcement event. Certainly, if that occurred, you know the facts and circumstances would be different, but that’s not the case for us.” – Charles Hoskinson.
SEC’s Move Against Crypto Has a Political Agenda – Hoskinson
During the interview, Charles Hoskinson said that the regulatory crackdown by the financial watchdog of the U.S. is political asserting that it has nothing to do with the violation of securities laws. Moreover, the actions have everything to do with the former crypto white knight, Sam Bankman Fried, who orchestrated the most significant financial fraud in recent history.
Hoskinson said that a political party that received huge donations from SBF is trying to prove they are not corrupt. Also, they are trying to salvage their image for needing to handle the FTX-saga properly. Hence, they moved to create crypto rules, accusing everyone of being a lousy actor and throwing them behind bars—a clear act of enforcement by force.
In July 2023, the Lummis-Gillibrand bill, also known as the Responsible Financial Innovation Act (RFIA) was presented. The proposed bill forces the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) to work together to regulate crypto in America. If passed, the bill can potentially fill the crypto regulatory void lurking in the United States.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
