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- Cardano founder Charles Hoskinson has shared his views about the ongoing legal battle between the SEC and Ripple Labs.
- Hoskinson insists that most layer 1 protocols including Ripple (XRP) aren’t securities and that the Ripple ecosystem will out-survive Brad Garlinhouse and other Ripple executives.
Cardano co-founder Charles Hoskinson has been discussing events around the two-year-long legal battle between the SEC and Ripple. The SEC sued Ripple Labs and its executives in 2020 for issuing unregistered securities in the form of XRP tokens. The lawsuit led to the termination of multiple partnership deals for Ripple as well as the delistings of XRP tokens on multiple crypto exchanges mainly in the U.S. Analysts further blame the poor performance of XRP on the ongoing case with most investors shying away from the asset.
With the case headed for a conclusion and Ripple looking more likely to get a win, there has been increased interest in XRP. In the last 7 days, the token has gained more than 8 percent climbing above $0.51 according to our data.
CNF recently reported on two huge companies joining the case in support of Ripple. I-Remit, a Philippines-based cross-border remittance company, and Private jet charter company, have requested to join the lawsuit filing an amicus brief to showcase the utility of the XRP token.
Over the weekend, Cardano co-founder Charles Hoskinson joined the list of influential people who are in support of Ripple. In a Twitter thread, Hoskinson has shared his views in which he notes that most layer 1 protocols are not securities.
Hoskinson notes that the Ripple ecosystem is decentralized and is larger than any company. Furthermore, it will out-survive Ripple Labs executives. The founder noted;
The merits of the case should rest on the absurdity of applying securities regulation to something that has millions of independent participants in more than a 100 countries who cannot be controlled by any fiduciary of a single company.
He further compared the market to the oil industry or baseball card trading. The founder adds “You can always securitize oil or baseball cards, but then you have obvious issuers and information asymmetries.” However, Hoskinson has continuously called for clear regulations in the market noting this will promote a healthier ecosystem.
Cryptocurrencies aren’t immune to regulation. Markets need to be stable, well-functioning, trusted actors monitored, and cartels examined. Commodity regulation is principles based, market oriented, and global by nature. Commodities survive those who aggregate them.