Hoskinson’s recent podcast provokes XRP holders.
Ripple (XRP) enthusiasts have maintained that there was a conflict of interest involving William Hinman, former SEC’s Director of Corporation Finance, during his time at the agency. As reported, aside from Hinman’s affiliations with the Ethereum project, he still had meetings with officials of Simpson Thacher & Bartlett, a member of Enterprise Ethereum Alliance (EEA).
Hinman’s calendar during his time at the SEC revealed that he scheduled meetings with Ethereum officials more than other crypto companies, even when he declared ETH as a non-security.
These developments prompted members of the Ripple community to assert that Hinman had a serious conflict of interest with Ethereum officials at the time, which saw him receive over $9 million as profit from Simpson Thacher.
Hoskinson Thinks Otherwise
However, Charles Hoskinson, the founder of Cardano (ADA), does not think the accusation is correct. Hoskinson made this known in a podcast with Tony Edward, the founder of Thinking Crypto. The Cardano founder described the claims as a grand conspiracy.
“The XRP community tried to invent this grand conspiracy that there was blatant corruption between the insiders at the SEC and Ethereum. I don’t honestly think that that’s the issue here,” Hoskinson, who co-founded Ethereum, was quoted as saying.
SEC and CFTC Are Ill-Equipped to Regulate Crypto
According to Hoskinson, the major issue is that the SEC and the Commodity Futures Trading Commission (CFTC) are not properly equipped with the relevant laws to regulate the cryptocurrency industry.
Hoskinson said the United States legislature had not done its job effectively in passing new laws that would create new standards for effective cryptocurrency regulations. In the absence of effective regulations, Hoskinson said the SEC would only try to regulate the emerging market in the best way possible given the limited rules available.
“Both the CFTC and the SEC are ill-equipped from law and policy to regulate the cryptocurrency space properly, so what they’re doing is they’re just trying to do it the way they think they can with the framework they have.”
XRP Holders Slam Hoskinson
The comments made by Cardano’s founder about a possible conflict of interest involving Hinman and Ethereum will not shock Ripple stakeholders. This is because Hoskinson is also affiliated with Ethereum.
Earlier this year, Vitalik Buterin, the co-founder of Ethereum, said Ripple lost its right to protect the moment the Silicon Valley tech company tried to throw ETH under the bus.
Meanwhile, Ripple enthusiasts have slammed Hoskinson for making such a comment about Ripple.
@MarketsMickle said: “Apparently, IOHK_Charles disagrees with both the SEC ethics office and former chair William Gundfest that there were “serious conflicts of interest” going on at the SEC during the ETH free pass. Weird. Watch him cry wolf when the SEC comes for ADA.”