Ripple‘s CTO, David Schwartz, and Cardano’s founder, Charles Hoskinson, engaged in a debate over the ETHgate conspiracy theory, focusing on the SEC‘s determination of Ethereum’s non-security status. The dispute revolved around the concept of corruption and favoritism.
The ETHgate Controversy
ETHgate is a controversial theory suggesting that Ethereum received preferential treatment from U.S. regulators, notably the SEC, who have consistently maintained Ethereum’s non-security classification. This stance has presented obstacles for other cryptocurrencies, like XRP, in gaining regulatory clarity and adoption.
During an AMA session on October 8, Charles Hoskinson opined that the government’s actions were rooted in favoritism rather than corruption. He highlighted that SEC Director William Hinman’s speech drafts from June 2023 didn’t offer proof of corruption but indicated favoritism. Hoskinson challenged the absence of concrete evidence supporting corruption claims and questioned whether XRP posed a threat to Ethereum’s non-security status.
Hoskinson’s comments triggered a swift reaction from the XRP community, with Ripple’s CTO, David Schwartz, joining the debate. Schwartz asserted that when a government entity shows favoritism aligned with personal interests, it can be considered a form of corruption. The XRP community aligned with this interpretation.
Hoskinson’s Ethereum History
It’s important to note that Charles Hoskinson was one of Ethereum’s eight co-founders, serving briefly as Ethereum’s CEO from 2013 to 2014 before parting ways due to differences with other co-founders, ultimately leading to the creation of Cardano.
The debate between Ripple and Cardano figures illustrates the ongoing controversy surrounding Ethereum’s regulatory status and the implications for other cryptocurrencies like XRP. While some see favoritism, others view it as a matter of corruption, adding complexity to the evolving regulatory landscape.