The XRP army slammed him for making remarks about Ripple.
Hoskinson believes the crypto market can be regulated like any other.
Charles Hoskinson, founder of Cardano, clarifies his stance on the SEC’s case against Ripple after the XRP community uncovers his previous statements against the latter. Because of their practicality, decentralization, and passing of the Howey Test, he thinks most Layer-1 protocols are not securities.
The fundamental problem is that neither the SEC nor the CFTC has the authority or the legal framework to govern the cryptocurrency market as they should.
Cardano’s creator, Charles Hoskinson, clarified his position on Ripple, XRP, and the SEC in a series of tweets on October 8. The XRP army slammed him for making remarks about Ripple after he claimed before that the XRP community seeks to construct a conspiracy of corruption between the SEC and Ethereum insiders.
No Clear Regulatory Framework
Since most Layer-1 protocols are useful, distributed, and satisfy the Howey Test, Charles Hoskinson does not consider them to be securities.
Hoskinson stated:
“I’ve always taken a position that most layer 1 protocols aren’t securities because it’s bizarre and senseless to consider something that offers utility, is decentralized enough to have operators and builders throughout the world, and survives its founders passing Howie.”
Hoskinson believes the crypto market can be regulated like any other. “Stable, well-functioning, trusted actors monitored, and cartels examined” are all necessary for a healthy market. In contrast, commodity regulation relies on universal principles and market forces. Even more so, he claims that “commodities survive those who aggregate them.”
Not only does suggesting the SEC to file suit against Ethereum not address the broader problems with cryptocurrencies, but it actually makes matters worse.