Cardano founder Charles Hoskinson has criticized a new crypto bill, arguing that it would classify XRP as a security at its inception. Hoskinson claims the bill places an undue burden on crypto projects to prove they are not securities, potentially trapping them in regulatory limbo. He highlighted that under the bill's framework, XRP would have been considered an investment contract asset when it launched, due to its centralized distribution and reliance on its founders.
Hoskinson warned that the bill could set a dangerous precedent for new innovations, as it implies all projects start as securities. He expressed concern that this could create bureaucratic challenges for the SEC to target future American cryptocurrency projects. Ripple CEO Brad Garlinghouse, however, supports the Clarity Act, emphasizing the need for regulatory clarity over chaos.
Cardano Founder Criticizes Crypto Bill, Warns of Security Classification for XRP
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
