Cardano Founder Mentions Main Reason Why SEC Sued Binance

Cardano Founder Hoskinson raises concerns over the complaint against Binance from the SEC, highlighting threats to financial freedom and potential CBDC control.

Charles Hoskinson, the founder of Cardano, has expressed his thoughts on the recent regulatory complaint against Binance and its CEO Changpeng Zhao, shedding light on what he perceives as a potential threat to the future of cryptocurrencies in the United States. 

Hoskinson’s tweets focused on what he called “chokepoint 2.0” and the potential implications for financial freedom.

Hoskinson highlighted the extensive nature of the complaint, comprising 136 pages, and suggested that it could be a part of a larger plan to establish increased control over individuals’ financial lives.

With respect to Binance, I'm reading through the SEC complaint. It's over 130 pages, but seems like the next in a series of steps to implement chokepoint 2.0 in the United States. The end goal is a agenda based CBDC partnered with a handful of massive banks and end-to-end control…

— Charles Hoskinson (@IOHK_Charles) June 5, 2023

Recall that the US Securities and Exchange Commission (SEC) recently filed a civil action against the parent company of Binance for allowing the trade of tokens the regulator described as unregistered securities, as reported by The Crypto Basic. 

Binance Suit Is Beyond Compliance Debate

Notably, the Cardano founder expressed concern that the end goal of the lawsuit against Binance may involve the creation of a centrally-backed digital currency (CBDC) aligned with a select group of influential banks, granting them complete control over every aspect of people’s financial activities.

According to Hoskinson, this regulatory event goes beyond a mere compliance debate. He believes it represents a philosophical disagreement about crypto’s existence and core principles. 

He argues that a group of unelected individuals has deemed concepts such as self-sovereign identity, wallet ownership, and economic agency unworthy of the masses, intending to concentrate these privileges in the hands of a privileged few.

Hoskinson’s perspective draws attention to the recurring battle between freedom and authoritarianism throughout history. He emphasizes that the current situation is not entirely unprecedented, as it reflects an ongoing struggle with different players, technology, and rhetoric. 

However, he also suggests that this particular event presents an opportunity for the cryptocurrency industry to unite and establish a cohesive set of rules and guidelines to prevent the United States from descending into a dystopia reminiscent of George Orwell’s “1984.” 

Recall that US Congressional Candidate January Walker echoed this same sentiment last year. Walker emphasized the importance of solidarity, urging the entire crypto community to rally behind Ripple against the SEC’s overreach. She warned that what is happening to XRP could happen to other assets in the future.