Cryptocurrency

FTX autopsy triggers Hoskinson-Schwartz feud over allegations of SEC corruption

Input Output CEO Charles Hoskinson sparked controversy on Twitter after he commented on allegations of SEC corruption and mocked claims that securities regulators identified Ripple and the XRP token.

John E. Deaton I started a thread, arguing that the lack of regulatory clarity around cryptocurrencies is a unique goal for the United States. moved to the lack of

In the wake of the FTX collapse, several exchanges are voluntarily putting together proof of reserves to prove solvency. However, it is still a voluntary move and as such lacks standardization across exchanges and verification from accredited sources.

Deaton then pointed to the close ties between Sam Bankman-Fried and securities regulators, given that Coinbase and Kraken are licensed in the United States. Still, neither appears to have much clout with the SEC.

Deaton is a prominent figure in the SEC v. Ripple litigation, 75,000 XRP holders Amicus Curiae, or Friends of the Court Brief, claimed the erroneous application of the Howie Test and determined XRP as a security, causing significant harm to investors.

Based on the current understanding and interpretation that is being challenged, only Bitcoin and Ethereum are considered commodities and not securities. That is, both are under the regulatory oversight of the Commodity Futures Trading Commission (CFTC), not the SEC.

In the US, some say the CFTC is more open and accommodating for responsible cryptocurrency innovation. for example, Jeremy RiaboAn attorney at Ropes & Gray, a law firm in Chicago, said:

“CFTC is a friendly regulator in that it is open to innovation.”

Conspiracy theories undermine industry’s closer ties, says Hoskinson

In response to the thread, Hoskinson dismissed the notion of a conspiracy against the crypto industry, saying he was given the platform at a congressional committee hearing in June and is in regular contact with regulators.

Cardano Founder Says Indication That Ethereum Developer ConsenSys Colluded With SEC To “Pursue Ripple” Goes Against Establishing Closer Ties Between Industry And Regulators added.

Deton said he did not condemn ConsenSys CEO Joseph Lubin for “seeking clarity or asking for a free regulatory pass.” However, his allegations center on allegations of wrongdoing related to former SEC Commissioner William Hinman.

Hinman is linked to the Ethereum Foundation through law firm Simpson Thacher. Crypto YouTuber Ben Armstrong recently called out Hinman for taking bribes in greenlighting Ethereum as a commodity.

Ripple’s CTO joins

Denying Deaton’s allegations, Hoskinson He said Ethereum’s status as a commodity had nothing to do with Ripple’s legal battle with regulators. He added that following Deaton’s thought process on regulatory corruption still ends XRP as a security.

Ripple CTO Joel Schwartz applauded Hoskinson and said Ethereum’s “free pass” with the SEC has undoubtedly impacted the ongoing Ripple lawsuit.

he explained Classifying XRP as a security and agreeing with Ethereum means applying a “certain level of precision” to reach that conclusion. Schwartz later hinted that Ripple’s willingness to fight the SEC was an act of revealing these details for regulatory clarity.

Adopting it as a rational position requires thinking that certain things matter in certain ways.

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