Charles Hoskinson Slams Biden For Trying To Destroy U.S. Crypto Sector

Charles Hoskinson Slams Biden For Trying To Destroy U.S. Crypto Sector

Charles Hoskinson Slams Biden For Trying To Destroy U.S. Crypto Sector

Crypto industry faces ongoing issues with U.S. regulators, including the Securities and Exchange Commission. Charles Hoskinson is the founder of Cardano. He recently expressed his strong criticism of President Joe Biden’s administration.

Troy Paredes, the former SEC Commissioner Troy Paredes also shared similar thoughts on digital assets being viewed as securities. Exodus, Kraken and other companies are actively trying to circumvent SEC action. Exodus’ shares are delayed from being listed on the NYSE because of SEC reviews. Kraken, meanwhile, is involved in a legal dispute with the SEC over its claim to have traded in unregistered stocks.

Cardano Founder Criticizes Biden Administration

Charles Hoskinson publicly criticized Joe Biden, accusing his administration of attempting to destroy the cryptocurrency sector in the United States. Hoskinson expressed his concern about the Biden Administration’s policies in a video. He believes that the administration is trying to destroy the cryptocurrency industry in the U.S.

Hoskinson also cited several U.S. actions that, he claimed, had negatively affected the cryptocurrency industry. These included restricted access to bank services and the Securities and Exchange Commission’s (SEC) regulatory approach that relies more on enforcers than guidelines. He also referred to recent efforts by the White House, to veto any legislation which could have supported the crypto industry.

The White House had opposed the House of Representatives’ joint resolution to reverse SEC guidelines which discouraged banks from owning cryptocurrencies. Biden’s administration claimed that changing these guidelines would undermine SEC’s ability to safeguard investors and financial system.

Hoskinson also does not like the idea of using the Securities Exchange Act of 1934 to regulate modern crypto-currencies. The legislation is outdated and irrelevant compared with modern asset classes.

He noted that Switzerland, Singapore and Dubai are countries with very welcoming crypto environments. This has in turn attracted large investments which he feels could have been made by the U.S. if the policy had been more favourable.

Hoskinson, when confronted by the fact that Trump is also not a fan of cryptography, defended Trump’s administration. He said that the Trump Administration largely ignored the crypto industry. Biden’s administration, on the other hand is actively trying to target it.

Troy Paredes Critiques SEC

Hoskinson’s dissatisfaction with the SEC and crypto regulations isn’t unique. Troy Paredes is a former SEC commissioner from 2008-2013. He recently expressed his concerns regarding the SEC’s interpretation that digital assets are securities. This was at the TokenizeThis conference 2024 in Miami. Paredes spoke specifically about the issue of jurisdiction regarding the federal securities laws’ classification of digital asset.

Paredes mentioned that even though SEC chair Gary Gensler provided some clarification on the Howey Test, there is still a great deal of uncertainty. Paredes argues that if a digital asset does not qualify as a security then the SEC has no jurisdiction over it. This is despite the SEC having a very wide interpretation of Howey’s test.

Hoskinson has himself cited the SEC’s’regulation through enforcement’ approach as a major point of contention. The SEC has taken legal action against well-known crypto companies like Binance and Kraken.

Paredes, as was Hoskinson’s case, also emphasizes the importance of a regulatory structure that is adapted to digital assets and their unique challenges, mainly because firms are facing a high degree of uncertainty when trying to adhere to current regulations.

Exodus awaits SEC decision

Exodus Movement Inc., on the other hand, is equally frustrated by SEC. The listing of the company’s shares of class A common stock at the NYSE is experiencing some delays. The SEC has to examine the company’s registration statement, which is why they are experiencing this pause. The listing was initially approved by NYSE American and received an initial approval from SEC. It was scheduled to start trading on Monday, May 9. The process is on hold until the SEC completes the regulatory process.

This is a major setback to Exodus as a transition from the NYSE would have greatly improved the visibility of the company and its financial growth within the traditional finance industry.

JP Richardson has expressed his frustration and surprise at the delays. Richardson emphasized the transparency and compliance of the company throughout the entire process. He is confident that this issue will be resolved quickly.

Richardson shed light on the emotional effect of the delayed listing. Many employees and their family members gathered to New York City in anticipation to see the company listed, but were disappointed.

Lark Davis, a crypto-entrepreneur and personality who has a humorous yet critical outlook on the SEC’s potential to take Exodus to court.

Kraken Challenges SEC

Kraken, meanwhile, is engaged in an ongoing legal dispute with the SEC over allegations it had traded securities that were not registered. Kraken has refuted SEC claims in its most recent court documents, blaming the SEC for lack of clarity, and misunderstanding legal principles relating to investment contracts.

SEC filed its lawsuit in November 2023. It accuses Kraken for generating revenues through what it calls “crypto assets securities” and offering services that are typical of brokers, dealers and clearing agencies, without the required registration.

Kraken’s defence challenges SEC interpretation and use of terms such as “investment concept”, “ecosystem” which, it claims are incorrectly applied instead of “investment contracts” and enterprise. Exchange also argues against the SEC belief that all investment contracts must be written. Contracts can be implied or oral, according to Kraken.

Kraken claims that in its motion to dismiss, the SEC has exceeded the authority it was granted by Congress. In support of its arguments, the exchange refers to previous SEC decisions that focused on Initial Coin Offerings and emphasized contract rights and obligations. Kraken also relies on the Howey Test, a standard legal test used to define what is considered a security. The definition is based on the assumption that capital will be invested in an enterprise where profits are expected to come from others’ efforts.

In a jointly filed amicus brief, eight state attorneys general show their support for Kraken. They argue that the SEC overstepped regulatory boundaries in this case. It will take time to see if Kraken’s arguments hold up. This case’s outcome could have a major impact on the regulation of crypto exchanges within the United States.

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