Cardano Founder Accuses SEC of Leniency Toward Bitcoin
Charles Hoskinson, the founder of Cardano, has criticized the U.S. Securities and Exchange Commission (SEC) for what he sees as the agency’s leniency toward Bitcoin. In a livestream, he argued that the SEC has given Bitcoin a “complete pass” over its decentralization status, undermining the Howey Test.
SEC’s Expensive and Ineffective Regulatory War
Hoskinson accused the SEC of engaging in a costly and ineffective legal war against the crypto industry, predicting that the SEC will continue to lose court cases. He believes the regulatory struggle will eventually cease without any formal recognition of error or compensation from the SEC.
Libertarian Lawmakers May Improve Situation
Hoskinson expressed support for libertarian lawmakers, stating that he believes they are working to reduce government influence and emphasizing the need for cryptocurrencies to rebuild the “horrifically broken” social contract.
Cardano’s Legal Battle with the SEC
The SEC has maintained its position that Cardano (ADA) is a security, despite Hoskinson’s criticism of the SEC’s treatment of Bitcoin. This stance has been featured in lawsuits against Binance and other crypto exchanges where Cardano is listed.
Bitcoin’s Distinct Characteristics Exempt It from Being a Security
Adam Back, a prominent figure in the cryptocurrency world, challenged Hoskinson’s claims regarding Bitcoin by asserting its origins as distinct from other cryptocurrencies. He differentiated Bitcoin from other cryptocurrencies like Ethereum and Cardano based on its origins, structures, and processes.
Broad Comparison with Commodities
Back likened Bitcoin to commodities like gold and diamonds, which are not considered securities. In contrast, he sees Ethereum, Cardano, and similar cryptocurrencies as securities, both unregistered and unregisterable in his view.
Hot Take
It’s crucial for the SEC to consider various viewpoints and conduct fair and thorough assessments to avoid regulatory overreach and protect the interests of crypto investors and creators.
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