Ripple CTO Criticizes Charles Hoskinson for Accusing SEC of Favoring ETH
In a recent development, Ripple’s Chief Technology Officer (CTO), David Schwartz, has responded to comments made by Charles Hoskinson, the founder of Cardano, regarding the United States regulators’ decision that Ethereum (ETH) is not a security. Hoskinson had addressed the controversial theory known as ETHgate during an AMA session on October 8, arguing that the actions taken by the government are not a result of corruption.
ETHgate is a conspiracy theory that suggests Ethereum received preferential treatment from the U.S. Securities and Exchange Commission (SEC), which has consistently maintained that ETH is not a security for several years. While the SEC’s director, William Hinman, classified Ether as not a security in 2018, the regulatory body has faced challenges in determining the status of other cryptocurrencies, including XRP.
Hoskinson believes that the release of Hinman’s speech drafts on Ethereum’s regulatory status in June 2023 indicates favoritism rather than corruption. He argued that this is simply how the internet operates and cannot be changed at this point. Furthermore, he questioned the evidence of corruption and called for emails and meetings that could prove such claims. Hoskinson emphasized that XRP caters to a different customer base, does not have smart contracts, and operates under a distinct business model. He even stated, “If you believe that XRP will dilute Ethereum’s goal of not being classified as a security, you’re a crazy person in my book.”
Hoskinson’s remarks regarding ETHgate elicited a swift response from the XRP community, particularly Ripple’s CTO, David Schwartz. Schwartz argued that government actors showing favoritism in line with their personal interests and those of their acquaintances constitute corruption. He expressed this view on X, formerly known as Twitter, on October 12.
This exchange of views highlights the ongoing debate surrounding the classification of cryptocurrencies by regulatory bodies. It also underscores the challenges faced by regulators in defining the status of different coins. While some believe that Ethereum has received preferential treatment, others argue that this is a result of differing business models and target audiences.
XRP Community’s Response
The XRP community reacted strongly to Hoskinson’s comments, with some suggesting that his inquiries about evidence related to ETHgate may be due to his alleged involvement in Ethereum’s early days. Hoskinson was one of the eight co-founders of Ethereum, along with Vitalik Buterin, and briefly served as the CEO of Ethereum from 2013 to 2014. Following disagreements with his co-founders, he left Ethereum to launch Cardano in 2014.
While the accusations and counterarguments continue, it is clear that the classification of cryptocurrencies as securities or not remains a contentious topic. The outcome of these deliberations has ramifications for the broader crypto industry and its relationship with regulatory bodies.
Editor Notes: Uber Crypto News Highlights the Debate on Crypto Regulation
The ongoing debate surrounding the classification of cryptocurrencies by regulatory bodies highlights the need for clarity and consistency in the industry. As different coins and tokens operate under diverse business models, it becomes essential for authorities to understand the underlying technology and its impact on financial markets and investors.
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