Cardano Founder Threatens Legal Action Over Stablecoin Snub

Cardano founder Charles Hoskinson has openly criticized the Wyoming Stable Token Commission for excluding his blockchain network from the state’s upcoming stablecoin project.

In a November 25 video shared on X, Hoskinson accused the commission of favouritism and a lack of transparency, claiming the decision-making process failed to include fair evaluation criteria. His company, Input Output Global (IOG), had reportedly advised the stablecoin project for 18 months but was left out of the final selection.

Wyoming Stablecoin https://t.co/WRLfLaVCCa

— Charles Hoskinson (@IOHK_Charles) November 24, 2024

The Wyoming Stable Token (WST), set to launch in Q1 2025, will be backed by U.S. dollars, Treasuries, and reverse repos under the Wyoming Stable Token Act, passed in March 2024. Recent reports reveal that blockchains such as Solana, Ethereum, Avalanche, Stellar, Polygon, and Optimism have been selected for the project.

Hoskinson expressed frustration at the lack of a formal request-for-proposal (RFP) process, calling it a violation of Wyoming’s good-faith procurement laws. He dismissed doubts about Cardano’s technical capabilities as baseless, arguing that the network is well-suited for such initiatives.

“An unelected bureaucrat decided what Cardano can and cannot do without any debate or oversight,” he remarked. “This isn’t what we fought for in Wyoming.”

Hoskinson warned that the decision could harm Wyoming’s blockchain ecosystem by diverting economic benefits to projects outside the state. He noted that local companies like IOG, which have heavily invested in the state, may not benefit from the stablecoin initiative.

IOG is reportedly considering legal action and other measures to challenge the decision. Hoskinson added that lawmakers have also raised concerns about the selection process, which he believes undermines the intentions of the legislation.

“This process hurts Wyoming and doesn’t reflect the intentions of the bill,”

he stated in a follow-up post on X.

Meanwhile, the Cardano Foundation recently reported its total assets is now worth $478 million. In its 2023 Financial Insights Report released on November 13, the foundation disclosed that 82.5% of its holdings are in Cardano’s native ADA tokens, 10.1% in Bitcoin, and the rest in U.S. dollars. 

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