Cardano Founder Dismisses Bitcoin Decentralization and Unfair Consideration of Altcoins by SEC - Herald sheets

Cardano founder Charles Hoskinson lodged a blistering criticism of the US Securities and Exchange Commission (SEC) alleging unfair treatment for altcoins. He faulted the securities regulator’s view that Bitcoin is decentralized, labeling that as granting the lead crypto a complete pass. 

Cardano Founder Questions Bitcoin’s Decentralization Attribute

Hoskinson attacked the Gary Gensler-chaired SEC in the Tuesday, November 28 livestream on X, lamenting that it considered Bitcoin sufficiently decentralized. The classification was unjustified as Bitcoin is inadequately decentralized. 

Hoskinson weighed on the eventuality that if three different entities are served with a subpoena and attacked, it implies the capability to execute a 51% attack targeting Bitcoin. Such is possible since it portrays how hash power works. 

Hoskinson teased that SEC’s consideration that Bitcoin is decentralized yields a complete pass to Team Orange, hence earning the non security classification. 

Hoskinson termed the SEC’s favorable treatment of Bitcoin indicative of an absolute pathetic joke. He questioned the variance that Bitcoin potentially has relative to Ethereum and Cardano. 

Hoskinson indicated that explaining the Bitcoin as if addressing a toddler and running the Howey Test yields no difference between Ethereum and Cardano. He argued that Bitcoin’s orange pill moon boys would allege they anticipate returns.

The Cardano founder faulted SEC for its wasteful nature in a process costing a hundred-million-dollar fortune to sustain the Pyrrhic war witnessed in the crypto industry. 

He added that SEC would ultimately suffer a series of losses, as witnessed recently in the court ruling that Ripple Labs’ XRP retail sale is not security. 

A similar loss surfaced when the court directed the SEC to review Grayscale Investments’ bid to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF).

Cardano Founder Hails Libertarian Lawmakers Efforts to Eradicate Unnecessary SEC’s Enforcements 

Hoskinson lamented that SEC would sustain the regulation by enforcement, though hopeful the approach would stop. He regrets that many crypto projects would have already lost a fortune on penalties and terminated operations. SEC would neither apologize nor will it refund the money.  

Hoskinson is confident of altcoins, among them Cardano’s native token, living long to win eventually. He hailed the stakeholders rallying against the unaccountable regulators. He expressed optimism in libertarian lawmakers who pursue changes to the current situation by unraveling the government. 

Hoskinson opined that the reason for cryptocurrencies’ existence amidst the onslaught from the regulators is the collective attempt to restore the social contract. He added that the discriminative treatment of altcoins horrifically broke the social contract. 

Hoskinson observed that the SEC repeatedly classified Cardano (ADA) as security, mainly when confirming charges against crypto exchanges. In mid-2023, the SEC asserted that Cardano’s native token was an unregistered security. Such arose in the SEC’s submission when proving charges against crypto exchanges Coinbase and Binance. 

Input Output Global Laments SEC Undeterred Efforts to Label Cardano a Security

Hoskinson’s blockchain research firm, Input Output Global (IOG), dismissed claims lodged by the SEC. The firm behind Cardano termed the complaints advanced by the SEC against Binance and Coinbase as founded upon factual inaccuracies. 

IOG downplayed the allegations that ADA is a security as per provisions under the US Securities laws. The firm ruled out such circumstances, though observed that SEC is yet to relent in advancing such an argument.

IOG regretted that the SEC appears undeterred in its repeated claim that Cardano (ADA) is security when confirming the latest round of charges against US crypto exchange Kraken.

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