The real reason behind the crypto heat, according to Cardano's co-founder

• Cardano’s co-creator stated that the real reason behind the heat on the crypto industry was the failure of FTX.
• Kraken’s co-founder stated that regulators intentionally ignore bad actors like FTX because it serves their larger agenda.

Cardano co-creator Charles Hoskinson has expressed his thoughts on recent regulatory actions against the crypto industry. The occasion for Hoskinson’s remarks was the introduction of the Digital Property Protection and Law Enforcement Act, a Senate bill in Illinois that has already been dubbed the most unworkable state law.

When asked what prompted increased regulation of the cryptocurrency industry, Cardano’s co-creator stated unequivocally that it was the failure of FTX. He tweeted,

“The minute it happened, I knew the entire industry was in for a seriously hard time.”

The FTX collapse. The minute it happened, I knew the entire industry was in for a seriously hard time

— Charles Hoskinson (@IOHK_Charles) February 20, 2023

Hoskinson agrees with Kraken co-founder about bad crypto actors

Moreover, Hoskinson agreed with Kraken co-founder and former CEO Jesse Powell, who stated that regulators intentionally ignore bad actors like FTX because it serves their larger agenda. Kraken was recently ordered to pay a $30 million fine in order to settle charges brought against it by the U.S. Securities and Exchange Commission (SEC).

Honestly, it's starting to feel like this is accurate. Fair notice was given for many of the firms that exploded months or sometimes years prior to the events. https://t.co/pPrDoEXLIw

— Charles Hoskinson (@IOHK_Charles) February 20, 2023

Powell emphasized the sequence of events that resulted in extensive capital destruction in the crypto industry. This leads to a trust deficit among the investors and discourages adoption. Regulators eventually get air cover to attack entities that many crypto veterans consider to be the good guys.

Hoskinson suggested that Powell’s assessment was becoming more credible, as fair warning was given for most companies that imploded months before the events. Several observers reminded Hoskinson for finally waking up to his skepticism about the conspiracy angle in the SEC versus Ripple case.

Blockchain lawyer Andrew Hinkes also expressed his displeasure with the development. He stated on Twitter that the Illinois Senate bill would have a negative impact on the country’s blockchain progress. He went on to say that the bill failed to protect validators, miners, and node operators.

#Illinois Senate Bill SB1887 would drive out #blockchain #node operators, #miners, and #validators, waste judicial resources, and confuse existing law in a quixotic attempt to protect Illinois consumers. Let's examine the mess in a #thread:

— Drew Hinkes (@propelforward) February 19, 2023