Cardano Inventor: This Altcoin Can Now Become a Securities!

Charles Hoskinson, the founder of Cardano (ADA), participated in a live broadcast on Twitter Spaces. During a talk hosted by Perianne Boring, founder of Chamber of Digital Commerce, and Teresa Goody Guillén, partner of BakerHostitler, the possibility of Ethereum as a security was discussed. Here are the details…

Cardano inventor Hoskinson comments on ETH and regulations

Hoskinson suggested that Ethereum can now be viewed as an unregistered security by the US Securities and Exchange Committee (SEC). As it is known, ETH has switched to the proof-of-stake consensus algorithm. Therefore, rumors spread that it could be a security. Hoskinson also agreed. “Now, it’s a proof-of-stake system, so it’s presumably a security now. Who knows? You know, one way or another, they’re not going to take an official position,” he said.

Hoskinson was critical of the current editing-enforcement environment. Meanwhile, he said he needed “kind of guidance” from regulators on how cryptocurrencies should be classified. “This is frustrating for me because I want to know what the standards are,” Hoskinson added.

Questions remain about whether ETH is a security As we reported, Ethereum’s securities status has been a controversial bet for years. In 2018, top SEC official William Hinman stated that the second-largest cryptocurrency is non-securities. However, the institution moved away from this stance during its legal battle with Ripple.

In addition, CFTC Leader Rostin Behnam recently stated that the second largest cryptocurrency is a commodity. He reiterated his view that he keeps it in just league with Bitcoin. However, Behnam also noted that Gensler had a different view on the bet. Gensler has so far declined to comment publicly on Ethereum’s regulatory status. However, he stated that he had the properties of a security a few years before he became the SEC leader.

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