In a recent Ask Me Anything (AMA) session, Charles Hoskinson, the founder of Cardano (ADA), addressed the allegations of corruption surrounding the U.S. Securities and Exchange Commission (SEC) and its interactions with the cryptocurrency industry. Hoskinson emphasized the importance of distinguishing between favoritism and corruption, particularly concerning the controversial speech by William Hinman, the former SEC director of Corporation Finance.
Hinman’s speech, in which he declared Bitcoin (BTC) and Ethereum (ETH) non-securities, has been subject to intrigue and suspicion. Ripple Labs had released documents related to this speech after a protracted legal battle, shedding light on the events leading up to Hinman’s remarks, including a meeting with Ethereum co-founder Vitalik Buterin.
The revelation of this meeting sparked speculations of favoritism, with some suggesting that Ethereum’s team may have influenced Hinman’s decision regarding ETH. However, Hoskinson firmly stated that these events do not provide conclusive evidence of corruption within the SEC.
During the AMA session, Hoskinson also addressed the “ETHGate” theory, a belief within the crypto community that Ethereum officials may have leveraged their connections or resources to protect favorable regulatory treatment for ETH. Hoskinson stressed that this theory should be separated into two distinct claims.
Hoskinson Deconstructs SEC Allegations
First, the theory involves allegations that Ethereum insiders used their connections and resources to influence officials to go easy on Ethereum. There are speculations that the Ethereum team may have bribed certain SEC officials to take action against Ripple (XRP) and its associated company, Rupple.
Hoskinson clarified that these are fundamentally different scenarios, stating,
“These are very different things. It is one thing to use relationships to protect your own thing. It is another thing to use relationships in a conspiracy to attack a competitor.”
He also challenged the proponents of the ETHGate theory, pointing out the lack of concrete evidence supporting the claim that Ethereum officials bribed the SEC to target XRP. Hoskinson, a co-founder of Ethereum, noted,
“You have yet to give any evidence whatsoever that a single meeting has happened where someone from Ethereum bribed or gave money or convinced a member of the SEC to go after XRP.”
Hoskinson’s recent statements have once again stirred controversy within the XRP community, which criticized him in the past for dismissing their claims as part of a grand conspiracy. Hoskinson, who left Ethereum four years before the contentious Hinman speech, continues to assert that the events leading up to the speech demonstrate favoritism rather than outright corruption within the SEC.
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