Cardano founder on the Ripple-SEC case: it will end soon and will be decisive for the crypto world
Cardano founder on the Ripple-SEC case: it will end soon and will be decisive for the crypto world

Cardano founder on the Ripple-SEC case: it will end soon and will be decisive for the crypto world

By Alessia Pannone - 12 Dec 2022

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Charles Hoskinson, founder of Cardano, recently made statements regarding the SEC vs Ripple case, the controversy that has affected the entire crypto world and beyond in recent years. 

Indeed, according to what the Cardano founder alleges and says he has heard, it appears that the famous lawsuit is close to being over by 15 December. However, how might the case end for the Ripple crypto? What are the consequences for the entire industry? 

Cardano founder on the SEC and Ripple case: maxi fine on Ripple Labs?

As anticipated, in one of his periodic videos, Charles Hoskinson of Cardano returned to speak on the SEC vs Ripple issue. Quite understandably, the regulatory issues involving the two players in the affair in recent years have also directly affected project leaders who would like to see fair treatment for the industry, at least in the United States. 

Among them, of course, has invariably been Hoskinson who, this time, not only discussed the case again, but also shared with his viewers what he would feel about the end of one of the most controversial lawsuits in the crypto world

Although it is unclear from whom or how he learned this, and assuming it is not just a rumor, it appears that the Ripple and SEC lawsuit is close to ending within days. 

The legal case over the years has been widely discussed and leading experts believe that its end, especially in the case of a victory by Ripple Labs, will be final and decisive for a large part of the crypto world. 

In any case, a possible maxi fine against Ripple Labs appears to be on the table, guilty of selling XRP, its native crypto, which would be in the SEC’s theory a financial security, and failing to follow the rules regarding such allocations.

However, the agency led by Gary Gensler has never been viewed favorably in this lawsuit, as it has been accused, by Ripple first, of having several flaws in its attack strategy. In summary: no overly concrete or convincing evidence against XRP. 

Hoskinson’s strange statement: the world controls DeFi 

In recent days, it seems that sentiment around the SEC and Ripple lawsuit has rapidly shifted, at least on the part of some analysts. This is what probably influenced the ambiguous and recent statement by Charles Hoskinson of Cardano. Who, he said: 

“I have heard rumors that the Ripple case could close on December 15th and that this could have catastrophic effects one way or the other. But, you know, let’s move on. Regardless of what happens, it’s a decentralized ecosystem that you guys control. The United States of America does not have the power to decide whether Cardano will live or die, it is you, the world; that’s the point of decentralized ecosystems.”

Thus, the statement from Cardano‘s founder puzzles most, especially since it is not clear where the source claiming the end of the case by 15 December comes from. However, there are ever fewer days left until the date that will disprove or confirm what Charles Hoskinson said.

It is assumed that if the case really does end a few days from now, then in all likelihood it will end in an agreement involving several points. Certainly, first of all, a drastic reduction of the SEC’s claims against Ripple. 

Second, unfortunately, a large payment charged to Ripple will probably also be included. In any case, this is not the best-desired end for crypto. However, it is still a solution that would get it out of the SEC spotlight and allow for its expansion in the United States, so far unfortunately limited precisely by the lawsuit. 

The Ripple community’s previous resentments against Cardano 

Prior to the latest statement by Cardano’s founder, there had recently been a time when Hoskinson found himself on the wrong side of the Ripple community for comments he made about the case. 

In fact, Hoskinson was the subject of an online backlash from XRP fans after he claimed that Ripple is under investigation by the SEC due to a lack of clear regulations. However, Cardano’s founder responded in due course claiming that he was misquoted. 

Specifically, Hoskinson had received numerous attacks after suggesting that the US Securities and Exchange Commission was looking into Ripple and the XRP token because of a lack of clarity and not because of corruption within the securities regulator. 

Thus, in an October video, Cardano’s founder responded on the matter by emphasizing his ties to XRP’s leadership. In fact, Hoskinson has always been one of the few to support every milestone of XRP. 

This is why it was a nasty surprise for him to find himself inundated with criticism he had received for a single comment, taken out of the context of an interview he said. 

The position of Cardano’s founder: regulation in the crypto world will end the industry 

In the aftermath of the unpleasant affair involving Hoskinson being under attack by the Ripple community, Cardano’s founder took the opportunity to further clarify his position. Not only about the Ripple case, but more generally about the collective action that the blockchain world needs to take. 

In fact, he stated: 

“You are the victims of regulatory capture because there is a legislative hole. It’s not fair, it doesn’t feel right, and it’s a terrible situation for everyone involved, but that’s what happens when the government over-regulates.”

According to Cardano’s founder, therefore, cooperation in the crypto space is of paramount importance. Because the time to act and do things correctly is short for the crypto world, and if regulation comes, it will end the industry as it is. 

The only factor that will prevent it, according to Cardano, is working together: that is, no pettiness and no loss for the blockchain world. 

Alessia Pannone

Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.

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