Cardano founder Charles Hoskinson decided to clarify his stance on XRP after the backlash from the Ripple community. Here are the details…
Cardano founder Charles Hoskinson clarifies Ripple statements
After making negative comments on Ripple and XRP, Hoskinson clarified his position in the SEC-Ripple dispute. It believes that most Layer-1 protocols are not securities. He points to their utility, decentralization and passing the Howey Test as factors behind this. But he states that the main problem is that the SEC or CFTC has not created regulation to effectively regulate the crypto market. As we have reported as Kriptokoin.com, the SEC is the US Securities and Exchange Commission. The CFTC is the US Commodity Futures Trading Commission.
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 (2/16)
— Charles Hoskinson (@IOHK_Charles) October 8, 2022
Hoskinson does not believe that XRP is a security. He thinks that the lawsuit against Ripple is absurd and that XRP should be regulated as a commodity. “Most Layer-1 protocols are not securities, they are commodities,” the Cardano founder wrote. Basically, Hoskinson believes XRP is a commodity. He even likens the coin to oil and even baseball player cards. However, there are “obvious problems and information asymmetry” when trying to “securitize” oil or cards. The following examples can be given to the layer-1 coins that Hoskinson mentioned:
- Bitcoin (BTC)
- Left (LEFT)
- Polkadot (DOT)
- Avalanche (AVAX)
- Cosmos (ATOM)
Hoskinson claims that the crypto market is not resistant to rules and regulations. Commodity regulation is based on principles, markets and global acceptance. What’s more, he says, “commodities survive by those who put them together.” Many XRP investors are known to have embraced the project. Also, XRP Ledger is decentralized and is expected to work for decades. Therefore, according to Hoskinson and other experts, it is absurd for governments to attack Bitcoin and projects unrelated to the Howey Test for energy use or Chinese influence. Also, implying that Ethereum should be sued by the SEC does not solve the larger cryptocurrencies issues.
Cryptocurrencies aren't immune to regulation. Markets need to be stable, well-functioning, trusted actors monitored, and cartels examined. Commodity regulation is principles based, market oriented, and global by nature. Commodities survive those who aggregate them (4/16)
— Charles Hoskinson (@IOHK_Charles) October 8, 2022
XRP price jumps
Charles Hoskinson accuses legislators of being negligent in passing crypto laws and resolving issues. Regulators SEC and CFTC are following existing laws due to the lack of crypto laws. The new laws will most likely come in 2023. Meanwhile, hopes are high for the SEC’s case against Ripple to come to a positive conclusion as the Hinman documents become critical to the summary judgment. Therefore, the XRP price has increased, as we have also reported on Cryptokoin.com. XRP has soared over 8% in the last 24 hours, hitting a high of $0.52.
Charles Hoskinson previously mentioned that XRP and ADA projects have reached new milestones this year. Ripple reported 9x growth in ODL capabilities. Meanwhile, Cardano also launched the Vasil hard fork. ADA price is currently trading at $0.42.
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