Cardano founder Charles Hoskinson has blasted the U.S. Securities and Exchange Commission’s unfair crypto policy. His critique centred around the SEC’s classification of major cryptocurrencies as securities while Bitcoin was exempted.
Cardano Creator Says Bitcoin Is Not Decentralized
Cardano’s Charles Hoskinson has clashed with the Bitcoin community over the classification of cryptocurrencies as either commodities or securities.
In a candid AMA session, Hoskinson challenged the crypto community to tell him why Bitcoin receives preferential treatment while other projects, including Cardano, face regulatory scrutiny.
“Explain to me the f****ng difference between Ethereum, Bitcoin, and Cardano, and the rest of the gang. Explain it to me. Like I’m five years old. Right now. Run the goddamn Howey test on it. Show me the difference between the two. Tell me,” the Cardano creator ranted.
Hoskinson pointed out an expectation of profit from BTC investments by “orange pill moon boys”. He also questioned Bitcoin’s decentralization, arguing that the ascendant crypto is not as decentralized as many believe:
“If you subpoena about three different entities [the largest mining pools], you could perform a 51% attack on Bitcoin because that’s the way the hash power works. But it’s decentralized. And team orange get a complete [free] pass. It’s a pathetic f*****g joke.”
Blockstream CEO Adam Back delivered a sharp rebuttal to Hoskinson’s views on Bitcoin. Back noted that Bitcoin did not conduct an initial coin offering and was mined from zero. In his opinion, Bitcoin is a commodity, while Cardano’s ADA and ETH “clearly” pass the Howey test.
However, pro-XRP lawyer John Deaton came to Hoskinson’s defense regarding his concerns about regulatory inconsistencies.
Deaton contended that the frustration expressed by Hoskinson would only irk Bitcoin maximalists. He believes the situation should be objectively understood by anyone looking at the current regulatory landscape for cryptocurrency in the US. The XRP holders’ attorney challenged the SEC’s approach to crypto regulation, stressing the need for coherent and consistently applied securities laws across all ecosystems.