Charles Hoskinson shared his opinion over the SEC’s stance on cryptocurrencies and clarified that ADA will not face any legal hurdle under current situations.
Cardano is a popular Proof-of-Stake (PoS) crypto network. Charles Hoskinson is the founder of this crypto project. Ada is the native token of the Cardano Blockchain. Hoskinson never invited or joined any Institutional investor for his crypto project and always focussed on the unbiased distribution of ADA among retail investors only.
As we know a couple of months ago, the United States Securities Exchange Commission (SEC) sued Binance & Coinbase exchange over providing unregistered securities offerings & running an illegal national securities exchange. In the charges, the SEC mentioned nearly a dozen Crypto assets, including ADA coin, as unregistered securities.
On 23 Aug 2023, In an interview with YouTube on Corey Costa’s Crypto Coins, Charles Hoskinson explained why ADA is not under any big legal pressure over nature (security or commodity).
Hoskinson said that we need to understand the SEC’s language and in that language, ADA is under a safe zone.
“There’s no coming after Cardano just because in a lawsuit against some exchange, they say that something is a security. There’s been no enforcement event. Certainly, if that occurred, you know the facts and circumstances would be different, but that’s not the case for us,” Hoskinson said.
However, Hoskinson supported ADA coin with the help of SEC’s claims against Crypto assets nature but he admitted that SEC’s crypto crackdown is a part of politics.
According to Hoskinson, the whole matter is related to the FTX exchange bankruptcy. In the past, the current government’s politicians received huge money from the FTX exchange co-founder Sam Bankman-Fried (SBF) but now these politicians are trying to show that they are not corrupt by taking action against the crypto companies.
It is worth it to note that here Hoskinson changed his statement by a very big distance, over his own statement passed by him 6 months ago.
Early this year, Hoskinson talked about the Ripple vs SEC case and said that the XRP Lawsuit was a part of unclear rules & regulations for this sector. At the time, Hoskinson faced huge criticism from the XRP community, and the majority of the XRP supporters said that Hoskinson didn’t want to support XRP, as it was not a matter of unclear rules but a political agenda against Ripple (XRP) & the whole crypto sector.