- Ripple’s CTO has countered Cardano’s founder in a debate that has challenged government actions.
- ‘ETHgate’ theory has been scrutinized, unveiling questions about Ethereum’s classification.
- Hidden details of Hoskinson’s early involvement in Ethereum’s journey have been unveiled.
Ripple’s Chief Technology Officer, David Schwartz, has offered a counterargument to Cardano’s founder, Charles Hoskinson’s comments regarding the motives of United States regulators in their determination that Ethereum (ETH) is not classified as a security.
Hoskinson Debunks ‘ETHgate’ Theory in AMA Session
During an October 8 AMA session, Hoskinson dismissed the “ETHgate” theory, arguing that corruption didn’t drive government actions. ETHgate alleges that Ethereum received preferential treatment from U.S. regulators, especially the U.S. Securities and Exchange Commission (SEC), which consistently claimed ETH isn’t a security.
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While the SEC’s director, William Hinman, explicitly stated in 2018 that Ether is not a security, regulators have encountered difficulties categorizing other cryptocurrencies like XRP, leading to challenges in their adoption.
Hoskinson maintained that Hinman’s regulatory drafts in June 2023 suggested favoritism rather than corruption, citing the absence of concrete evidence. He also questioned the motivation behind Ethereum’s push not to be labeled a security and its potential concerns about XRP.
XRP CTO claps back at Hoskinson in heated ETHgate debate
Hoskinson’s recent remarks on ETHgate have sparked a response from the XRP community, including figures like XRP CTO Schwartz. The crux of the disagreement centers around the definition of corruption. Schwartz contended, “I would argue that a government actor showing favoritism aligned with the personal interests of themselves and their friends is corruption.”
Some community members suggested Hoskinson’s inquiries might be linked to undisclosed details from his early involvement in Ethereum. Hoskinson was one of Ethereum’s co-founders and briefly served as its CEO from 2013 to 2014 before leaving to launch Cardano.
On the Flipside
- His prior involvement with Ethereum might have influenced Charles Hoskinson’s dismissal of the “ETHgate” theory.
- It’s important to note that regulatory challenges and inconsistencies in treating cryptocurrencies are not unique to Ethereum. XRP, as mentioned, has faced its own classification uncertainties.
Why This Matters
David Schwartz’s counterargument to Charles Hoskinson sheds light on the nuanced world of cryptocurrency regulation. This discussion not only reveals the complexities regulators face but also underscores the importance of clear and consistent guidelines for cryptocurrencies, which is crucial for industry participants and enthusiasts.
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To learn more about Ripple’s Chief Technology Officer’s perspective on innovation in the U.S., read here:
Why Ripple’s CLO Believes Innovation Is the Key for U.S.
For insights into the recent criticism of Cardano’s IOG project during a midnight event, check this out:
IOG Flounders to Fend off Cardano Midnight Criticism
