In two lawsuits against well-known crypto exchanges, the SEC described, among other things, Cardano (ADA) as an illegal security. Since the start of the proceedings in June, however, the authority has not taken any measures against the blockchain. Founder Charles Hoskinson thinks he knows why.
The SEC is continuing its lawsuit against Ripple and the cryptocurrency XRP through an appeal. Meanwhile, the question arises as to what measures the US Securities and Exchange Commission will take against other cryptos like Cardano.
In two lawsuits filed in June against crypto exchanges Coinbase and Binance, the SEC specifically described other coins as illegal securities . These include Solana, BNB, Algorand and Cardano.
In a conversation with YouTuber Corey Costa, Cardano founder Charles Hoskinson addressed the question of how the SEC is intervening against ADA. The answer is surprisingly simple: So far, the SEC has done absolutely nothing.
“Why is the SEC attacking Cardano?” Costa asked Hoskinson. “There are no attacks on ADA just because it claims in litigation with crypto exchanges that Cardano is an illegal security,” the programmer replied.
“There have been no SEC enforcement actions against Cardano so far ,” Hoskinson explains. The American is convinced: “The whole thing has nothing to do with the securities laws.”
The dispute between regulators and the crypto industry in the US is simply political in nature. In addition, some politicians are in need of explanations and want to cleanse their reputation by publicly rejecting crypto.
Hoskinson is alluding to the donation scandal surrounding FTX founder Sam Bankman-Fried, who stole around ten billion in customer deposits. He invested the money in a wide variety of areas, including politicians. Apparently he wanted to buy himself a good-natured attitude in US politics.
Bankman-Fried gave the US Democrats around 45 million US dollars. Hoskinson believes that the political party has not come to terms with the allegations of corruption that have arisen as a result.
Previous efforts to establish a benevolent crypto law in the USA together with the Republicans have now failed due to this sentiment.
There was only a consensus to create a law to regulate crypto. Now one party is accusing the industry of mass disobedience and saying we’re all bad guys. It’s pure fantasy.
According to Hoskinson, the Democratic Party’s policy towards the crypto industry is harmful to the entire country. However, a hostile attitude cannot effectively combat the industry, but only drive it out of the USA. Other countries would then be the beneficiaries.
However, Hoskinson is not giving up all hope for the USA. The 35-year-old is known to live in the US state of Colorado. Hoskinson, who runs a successful YouTube channel himself, dedicates the introduction to his videos to his home state, where he has lived since childhood.
There is also hope because courts do not agree with the assessments of the SEC, which has been particularly active against crypto since this year.
“When people overdo it, you can often see a backlash ,” the Cardano founder describes this state of affairs. The Republican Party is also fighting back.
“Everything will be fine in the long run ,” the computer scientist believes. In any case, the SEC does not have specific powers to make decisions about the crypto industry.
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