Ripple CTO Clashes With Cardano Founder Over Ether Security Classification Debate
Summary:
David Schwartz, Ripple's CTO, has responded to Charles Hoskinson, founder of Cardano, over his comments concerning the decision by U.S. regulators to not classify Ether (ETH) as a security. Hoskinson, during an 'Ask Me Anything' session, argued that this was not corruption but favoritism. This led to rebuttals from the XRP community, particularly Schwartz, who asserted that using personal interests to show favoritism is essentially corruption.
David Schwartz, the Chief Technology Officer at Ripple, has responded to assertions made by Cardano's founder, Charles Hoskinson, concerning the reasons why United States regulators do not categorize Ether (ETH) as a security. During an 'Ask Me Anything' session on October 8, Hoskinson touched on the much-discussed ETHgate theory, maintaining that the actions of the authorities were not driven by corruption. The ETHgate theory suggests Ethereum was granted an exemption by U.S. officials, notably the U.S. Securities and Exchange Commission (SEC), which has maintained over several years that Ether isn't a security. Despite the fact that SEC director William Hinman stated in 2018 that Ether is not a security, U.S. regulators have found it challenging to classify other cryptocurrencies, including XRP, causing roadblocks to its usage. Hoskinson believes that the drafts of Hinman's speeches pertaining to the legal standing of Ethereum, issued in June 2023, indicate not corruption but favoritism. During the 'Ask Me Anything' session, he stated that what's perceived isn't corruption, but favoritism, adding that this is the nature of the internet and its unchangeable. Hoskinson also underscored that there's no proof to suggest anything beyond partiality by the SEC. He questioned where the evidence is, asking for meetings and emails to prove otherwise. He also stated that XRP is designed for different clientele and doesn't boast smart contracts, adding that it operates on a completely different business model. Hoskinson's recent comments on ETHgate soon provoked a reaction from the XRP community, particularly from leaders such as Ripple's CTO, Schwartz. They disputed with Hoskinson over the definition of corruption, arguing that favoritism exhibited by a government actor in line with their personal interests and those of their friends is corruption. Aside from his role with Cardano, Hoskinson is known as one of the eight co-founders of Ethereum, alongside Vitalik Buterin and was even briefly Ethereum's CEO between 2013 and 2014. After disagreements among the founders, Hoskinson departed Ethereum in 2014 and subsequently established Cardano.
Published At
10/13/2023 10:21:48 AM
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