Cardano Founder: $ADA Is Not a Security but There’s No Telling Whom SEC Will Fight Next
Charles Hoskinson, Co-Founder and CEO at Input Output Global (“IOG), the blockchain technology firm responsible for the development of Cardano ($ADA), has recently commented on what would happen if U.S. regulators were to consider $ADA a security.
During an ask me anything (AMA) session on YouTube, Hoskinson commented on the potential scenario, saying that there is “nothing in the history of Cardano that feels security-like, from the beginning to where it’s at today to the fact that the network is fully decentralized and so forth.”
Hoskinson added that he would believe that if $ADA were to be considered a security, other top cryptocurrencies like Ethereum ($ETH) and Bitcoin ($BTC) could also be considered securities. Per his words, this is a “problem with regulation through enforcement,” as “any given Sunday, it’s whoever the regulators decide to pick there’s a big fight.”
He added that these fights lead to significant amounts being spent on legal fees and “it’s brutal and vicious and a lot of hard feelings.” Hoskinson also commented on the SEC«s lawsuit against Ripple and two of its executives alleging they “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.”
After nearly two years, the lawsuit is believed to be coming to an end as both parties have requested a summary judgment. Hoskinson himself noted the end may be near saying:
I’ve heard rumors that the Ripple case will be settled December 15th. Let’s just see. That could have catastrophic implications for the industry, one way or the other. But you just keep moving forward.
Regardless of the outcomes, Hoskinson said that the US does not “get to say that Cardano lives or dies,” but the community does. As reported, the number of smart contracts deployed on the network has grown by more than 340% year-to-date as developers keep on working in the cryptocurrency’s network, despite the ongoing bear market.
Plutus, it’s worth noting, is the “smart contract platform of the Cardano blockchain” that allows users to “write applications that interact with the Cardano blockchain.”
The Cardano network has recently reached a new milestone with the launch of its first stablecoin. Other stablecoins are being created on the Cardano network. EMURGO, which is the commercial arm of Cardano, announced the planned launch of its new dollar-backed stablecoin USDA, which is “the first fully fiat-backed, regulatory compliant stablecoin in the Cardano ecosystem,” earlier this month.