- Cardano founder Charles Hoskinson shared his thoughts on the ongoing legal battle between the SEC and Ripple Labs.
- Hoskinson insists that most Layer 1 protocols including Ripple (XRP) are not securities and that the Ripple ecosystem will outlive Brad Garlinhouse and other Ripple executives.
Cardano co-founder Charles Hoskinson discussed the events surrounding the two-year 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 several partnership agreements for Ripple, as well as the delisting of XRP tokens on multiple crypto exchanges, especially in the US. Analysts further blame XRP's poor performance on the ongoing case of most investors shying away from the asset.
As the case nears conclusion and Ripple looks more likely to win, interest in XRP has increased. Over the past 7 days, the token has gained more than 8 percent, climbing above $0.51 according to our data.
CNF recently reported on two major companies joining the case in support of Ripple. I-Remit, a Philippine cross-border remittance company and private jet charter company, applied to join the lawsuit and filed an amicus brief to demonstrate the utility of the XRP token.
Over the weekend, Cardano co-founder Charles Hoskinson joined the list of influential people backing Ripple. In a Twitter thread, Hoskinson shared his views, noting that most Layer 1 protocols are not securities.
Hoskinson notes that Ripple's ecosystem is decentralized and bigger than any company. Additionally, it will outlive Ripple Labs executives. The founder noted;
The crux of the case should be the absurdity of applying securities regulation to something that has millions of independent participants in more than 100 countries that 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 consistently called for clear regulations in the market, noting that this will promote a healthier ecosystem.
Cryptocurrencies are not immune from regulation. Markets must be stable, well-functioning, trustworthy actors must be monitored and cartels vetted. Commodity regulation is principle-based, market-oriented and global in nature. Commodities survive those who aggregate them.
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