Cardano (ADA) co-founder Charles Hoskinson says ADA remains strong despite the U.S. Securities and Exchange Commission (SEC) cracking down on Kraken’s cryptocurrency staking service. says.
Hoskinson in new Youtube video To tell The fact that the SEC has indicted Kraken’s staking service for violating securities laws will force a larger national debate on the issue.
Kraken Settlement We have resolved the issue by paying a $30 million fine and removing staking from our platform.
However, Hoskinson said the SEC doesn’t appear to consider blockchain projects like ADA to be securities simply because they involve staking, instead allowing the platform to provide a staking service for customers. It said it targeted the Kraken the way it was constructed.
“Obviously there will be national discussions about these things, especially now that Kraken and others are involved. There doesn’t seem to be any attempt to say that it is.you will probably see a lot of FUD [fear, uncertainty and doubt] Twitter, Reddit, and elsewhere said, “Well, if staking is security, it must mean that the underlying asset is security. So Ether is now security. Or ADA is now Security.
To be clear, you can put the commodity wheat or the commodity gold into some kind of packaging or structuring. A package is a security and the activities you do with it are regulated. However, this does not mean that wheat and gold are securities. Therefore, by doing it in stake pools, there is no transitivity that can be inferred that there is something wrong with the underlying asset. I don’t see any attempt to do that at this time. “
However, Hoskinson acknowledges that there is a degree of unpredictability when it comes to the government’s next move in regulating the cryptocurrency sector. We express concern that it may become impossible to distinguish between different cryptocurrency staking models, such as that of Ethereum (ETH) and that of Ethereum (ETH).
“Of course governments are unpredictable and facts and circumstances can change. The ecosystem is fine.So I think Cardano is fine as it is.I think the staking model as it is is fine.Unfortunately the confusion with what Ethereum is doing with Cardano is that I It can drag us in unpleasant ways.”
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