The IOHK CEO asserts that XRP maintains its clean status and free from the SEC, despite the aggravated assault Ripple, the issuing company is currently facing. Last week, while answering questions in a YouTube live session on ADA and the Cardano developments, Charles Hoskinson, the founder of Cardano, talked about the uproar currently enveloping Ripple on the alleged sale unlicensed securities.
Early December, the Securities and Exchange Commission (SEC) filed a lawsuit against the San Francisco payments firm, Ripple, accusing the CEO and co-founder Brad Garlinghouse and Chris Larsen of various crimes, including the illegal sale of XRP and profiting over $700 million from there.
Hoskinson says SEC’s claim is partially true
Hoskinson did not totally agree with the SEC’s reference to XRP as a security. He sounded unconvinced but admitted that the asset’s current form, use, and degree of decentralization made the claim partially true. Hoskinson further quipped, “Was Ripple a security at some point during its life? I’m sure a fair argument could be made.”
Hoskinson, who launched Cardano after serving as a founding member of Ethereum, was stunned by the shocking manner XRP was reportedly distributed and the accompanying allegations indicting the co-founders of participating in the profiteering. The Cardano founder spotted a security-like pattern in the deals. He was dismayed that a real company would engage in distributing a token in the present generation of smart contracts.
He noted that the claim made no sense. ‘You don’t need to do that to an already existing network,’ he said. He added that such an act was alarming, as the custody company had the discretion to spend it. However, the crypto expert expressed worry about the ambiguity surrounding the regulation of cryptocurrencies.
Hoskinson faults stability in regulation
He argued that there is no stability in the regulation of cryptocurrencies. He implies that stakeholders are confused about crypto’s nature as a security or commodity or currency or something else. “The problem with cryptocurrencies is they do everything and nothing.” he concluded.
Meanwhile, in a stout defense, Ripple’s management accused the SEC of issuing “unproven allegations against Ripple” and promised to make public their response to the various allegations in few weeks. The company further echoed Garlinghouse’s startling remarks against crypto (which crypto circles strongly criticized) in its statement, stating that the attack badly affected “innocent” XRP holders. ARipples promised to continue its operations, serving the American markets.
This shows that XRP had a large chunk of its volumes in places outside the US, including Japan and Singapore, with better regulation for the asset. The firm promised to remain steadfast and committed to constructive regulatory procedures.