- Cardano’s Charles Hoskinson delved into why the SEC is coming after the crypto industry.
- Hoskinson implied the SEC is driven by politics and has nothing to do with Securities law.
- The rowdy founder believes everything will get sorted out eventually.
Cardano still faces repercussions from the SEC’s high-profile crypto crackdown, as major US crypto exchanges continue to delist ADA following its ‘security’ classification.
While ADA’s regulatory status remains uncertain in the US, Cardano Founder Charles Hoskinson has revealed that there’s more to SEC’s actions than what meets the eye, pointing out that ADA is not the primary focus of the regulator’s actions.
Charles Hoskinson Shed Light on the SEC
In a YouTube interview with Corey Costa, Charles Hoskinson sheds light on the SEC’s recent crypto crackdown, sharing insights into why the regulator has become increasingly involved in the crypto industry.
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Hoskinson clarified Cardano itself isn’t a direct target of the SEC’s enforcement; rather, it got caught in the crossfire aimed at US cryptocurrency exchanges. The founder underlined that the SEC’s actions were driven by politics and had nothing to do with Securities laws.
Hoskinson indicated that the Democratic party, which has notably received huge donations from FTX’s disgraced founder Sam Bankman-Fried, is trying to clear its name after the fiasco.
In doing so, the party has shifted from its bipartisan approach to crypto regulation and now labels everyone in the industry as bad actors, even calling for their incarceration. Hoskinson stressed that the SEC’s regulatory pressure is hurting a burgeoning sector of the American economy and offshoring several entrepreneurs, creating jobs in the country.
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Hoskinson expressed hope that as the government clarifies critical issues like asset classification and decentralization, the path forward could become clearer for the crypto industry. The founder believes that Cardano’s Edinburgh Decentralization Index could play a pivotal role in helping regulators make informed decisions and set clear definitions.
On the Flipside
- The US House Financial Services Committee recently advanced a set of groundbreaking crypto bills that could provide much-needed clarity to Cardano and the broader crypto industry.
- Earlier this year, Charles Hoskinson shared that the SEC’s lawsuits against Binance and Coinbase were motivated by an agenda to implement CBDCs.
Why This Matters
Cardano is the seventh-largest token by market cap and the third-largest blockchain ecosystem. The SEC’s actions had a damning effect on a token as impactful and large as ADA. Hoskinson’s clarification could instill confidence in holders about Cardano’s regulatory status.
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