Charles Hoskinson clarifies his attitude towards the Ripple-SEC lawsuit, says XRP should be regulated as a commodity
In a series of recent tweets, Charles Hoskinson, the founder of IOG and Cardano, decided to clarify his stance on the SEC lawsuit against Ripple Labs, saying that some of the XRP army has been criticized for his recent comments on the Ripple issue. He has been “hit hard” by the members. with the securities regulator.
He does not believe that XRP is a security and this suit against Ripple is absurd and that XRP should be regulated as commodity.
“Most layer 1 protocols are not securities”, “they are commodities”
Cardano’s founder wrote that he believes that most Layer 1 protocols (which include XRP) are not securities, because they provide utility and have substantial decentralization, plus they pass the Howie test. indicating whether the asset is a security or not.
Basically, Hoskinson believes XRP to be a commodity, likening it to oil and even baseball cards. However, he warns, if you try to securitize oil or cards, you have “obvious issues and information asymmetries”.
Hoskinson acknowledged that in order for markets to be stable and function well cryptocurrencies need regulation, actors must be monitored and cartels must be scrutinized. He said that it is the regulation for those items that are best suited here.
“Ripple ecosystem will survive its creators”
Another argument given by Hoskinson towards XRP being a commodity is that “commodities survive those who aggregate them”. In the case of Ripple, he wrote that the company has created “something that has an ecosystem that will survive Brad [Garlinghouse, CEO], Chris [Larsen, former CEO, co-founder], David Schwartz (CTO) or anyone else”.
Full-scale criticism by the XRP military towards himself, Hoskinson considered “proof of this reality”. The XRP ledger will serve for decades of trading value, he said.
In his final tweet in the thread, he wrote about “absurdity of applying securities regulation” to XRP – “something that has millions of independent participants in more than a 100 countries who cannot be controlled by any fiduciary of a single company.”
