Cardano founder Charles Hoskinson decided to clarify his stance on XRP after reflecting on 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 many of the Layer-1 protocols are not securities. He points to their merits, decentralization and passing the Howey Test as factors behind this. But he states that the real problem is that the SEC or CFTC has not created regulation to actively regulate the crypto market. As Koindeks.com also reported, the SEC is the US Securities and Exchange Commission. The CFTC is the US Commodity Futures Trading Commission.
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. “Multiple of the 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. But when trying to “securitize” oil or cards, there are “obvious difficulties and information asymmetry”. 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 argues that the crypto market is not resistant to rules and regulations. Commodity regulation is based on factors, markets and global acceptance. What’s more, he says, “commodities survive by those who bring them into existence.” Many XRP investors are known to have embraced the project. Also, XRP Ledger is decentralized and is expected to operate 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 the use of force or Chinese influence. Also, implying that Ethereum should be sued by the SEC does not solve the problems of larger cryptocurrencies.
XRP price jumps
Charles Hoskinson accuses legislators of being negligent in passing crypto matters and resolving matters. Regulators SEC and CFTC are following existing laws due to the lack of crypto items. The new laws will most likely come in 2023. Meanwhile, hopes are high for the SEC’s case against Ripple to be settled positively as the Hinman documents become critical to the summary judgment. Because, Koindeks.com As we have also reported, the XRP price has increased. XRP has rallied over 8% in the last 24 hours, hitting a high of $0.52.
Charles Hoskinson has previously mentioned that XRP and ADA projects have reached new milestones this year. Ripple reported 9x growth in ODL capabilities. In the middle, Cardano also launched the Vasil hard fork. ADA price is currently trading at $0.42.