Cardano’s founder, Charles Hoskinson, has expressed confidence that the United States Securities and Exchange Commission (SEC) will not target Cardano’s native token, ADA. In a recent interview on Corey Costa’s Crypto Coins YouTube channel, Hoskinson highlighted the absence of any enforcement action against ADA thus far, suggesting that this trend is unlikely to change. Despite ADA being mentioned as a security in a lawsuit against a crypto exchange, Hoskinson emphasized that there has been no direct action taken against Cardano.
The SEC’s recent lawsuits against major crypto exchanges Coinbase and Binance resulted in the classification of approximately 12 tokens, including ADA, as securities. The regulatory body insists that these tokens should be registered before being listed on exchanges. Coinbase CEO Brian Armstrong revealed that the SEC had requested the delisting of all tokens, except bitcoin, due to their classification as securities.
Hoskinson’s remarks come in the midst of an ongoing legal battle between the SEC and Ripple Labs, with the SEC claiming that Ripple’s XRP token is a security. However, a judge recently ruled that the retail sales of XRP do not fall under the category of securities, while institutional sales do. This case highlights the complexities surrounding the SEC’s classification of tokens and the ongoing debate within the crypto industry.
When asked about the SEC’s perceived antagonism towards Cardano and other blockchains, Hoskinson clarified that the agency’s actions have not targeted ADA specifically. He emphasized the importance of accurate language, stating that merely mentioning a token as a security in a lawsuit against an exchange does not constitute enforcement. Hoskinson acknowledged that the circumstances would be different if an enforcement event were to occur, but as of now, Cardano remains unaffected.
Hoskinson also suggested that the SEC’s crackdown on crypto entities is driven by political motives rather than a focus on securities laws. He claimed that the Commission’s actions are connected to Sam Bankman-Fried, the disgraced founder of bankrupt crypto exchange FTX, who has been likened to Bernie Madoff. Hoskinson alleged that a political party in the U.S., which received significant funding from Bankman-Fried, is attempting to distance itself from corruption allegations by accusing various actors in the crypto industry and seeking to imprison them.
In conclusion, Charles Hoskinson, the founder of Cardano, believes that the SEC will not target ADA based on the current circumstances. He emphasized that while other tokens have faced enforcement actions, Cardano has remained unaffected. Hoskinson also suggested that the SEC’s actions are politically motivated and connected to a disgraced crypto exchange founder. The regulatory landscape surrounding cryptocurrencies continues to evolve, and market participants eagerly await further developments.