Charles Hoskinson Said XRP Is Not A Security But There’s More To It

Charles Hoskinson said XRP is not actually security but there’s a catch and we are going to see more about it in today’s Cardano news.

The CEO of IOHK said that XRP is in the clean in its current form from the SEC despite the many troubles that mounted for Ripple. In a YouTube session last week, Cardano founder Charles Hoskinson said XRP is not a security while speaking about ADA’s latest developments. Earlier this month, the Securities and Exchange Commission launched a lawsuit against Ripple and its co-founders Chris Larsen and Brad Garlinghouse who are both named as defendants in the lawsuit. The SEC alleged the duo had made profits of over $700 million from the illegal sale of XRP apart from the major legal breaches. Despite SEC calling XRP security, Hoskinson is not convinced:

 “I don’t think XRP is a security, and I think in its current form, its current use, and the level of decentralization the ecosystem has, that’s certainly true.”

Our statement regarding recent market participant activity in response to the SEC’s lawsuit. https://t.co/IpQYeCuV5A

— Ripple (@Ripple) December 29, 2020

Cardano’s founder continued:

 “Was Ripple a security at some point during its life? I’m sure a fair argument could be made.”

Hoskinson was a part of the founding team at ETH before choosing to go his own way to develop Cardano and raised more concerns about the way XRP was distributed and the allegations of his co-founders that he made the big bucks:

 “There was certainly security-like behavior and it’s deeply puzzling to me, for example, in the age of smart contracts why an actual real company would be responsible for the distribution of a token. Now that makes no sense. You don’t have to do that when you have an already existing, functioning network.”

He noted that this is problematic especially when there’s discretion among the custodial company to spend it. He continued that the regulation of crypto remained a grey area:

 “The problem with cryptocurrencies is they do everything and nothing. And some days, they look like securities, some days they look like commodities, some days they look like currencies and some days they look like something else entirely.”

In the meantime, Ripple clapped back at the SEC in a statement:

 “The public and press have only heard the story from the SEC’s side, and we’ll be filing our response in a few weeks to address these unproven allegations against Ripple.”

Ripple added that it will continue offering its products for all US citizens on the market despite the lawsuit making it clear that most of the XRP volumes came from countries outside of the US in places with better regulation than Japan.