IOHK’s founder, Charles Hoskinson was ensnarled into a Twitter debate with several crypto experts saying that the SEC was tipped off by the founder of ConsenSys, Joe Lubin, to go after Ripple (XRP). Crypto Law founder John Deaton refuted Hoskinson’s allegations by defending Lubin.
There is some magic line that the SEC has drawn about what is sufficiently decentralized. Apparently, Ethereum and Bitcoin meet it, and in their mind XRP doesn’t. I agree it’s a fucked up situation and should be changed. I went to Washington to push for that
— Charles Hoskinson (@IOHK_Charles) November 14, 2022
Deaton further emphasized that the founder of Ripple Brad Garlinghouse too was doing the same and that would be acceptable as well. Deaton’s prime focus has been on Hinman emails, which still remain undisclosed.
Hoskinson added that a free pass for Ethereum (ETH) has zero material impact on the Ripple litigation. The argument highlights that both, Ethereum and Ripple, would be considered a security, however, Ethereum authorities bribed the regulators to not consider them one.
Additionally, the CTO at Ripple David Schwartz in response to Hoskinson asks if people really believe that the Ethereum free pass had zero material impact on the Ripple litigation. While the regulators could have adopted that both XRP and ETH are securities or neither of them security, they let ETH go and targeted XRP.
According to Schwartz, by the time the SEC could intervene, Ethereum had a huge ecosystem of dApps, VCs, political capital, and proof-of-work.
Hoskinson added to Schwartz’s comments:
There is some magic line that the SEC has drawn about what is sufficiently decentralized. Apparently, Ethereum and Bitcoin meet it, and in their mind, XRP doesn’t. I agree it’s a fucked up situation and should be changed. I went to Washington to push for that.
The release of the Hinman documents will prompt inquiries as to why XRP was not granted the “Ethereum free pass,” given that the SEC has not established that XRP is “not a security.”
Subsequently, yesterday Hoskinson apologized to the XRP community for any of his previously made comments about Ripple. To this, Deaton advised XRP holders in a tweet today to quit bothering Hoskinson about the conflict that occurred a month ago.