David Schwartz, Ripple’s Chief Technology Officer, has recently responded to Charles Hoskinson’s defense of the Securities and Exchange Commission’s (SEC) comments on Ethereum. The controversy, known as ETHgate, arose following the SEC’s case against Ripple and the increased regulatory scrutiny on altcoins being considered securities. It gained more attention when a draft of the Hinman documents, where SEC director William Hinman argued that Ethereum is not a security, was released.
Hoskinson’s Perspective on ETHgate
In an AMA session on October 8, Cardano’s co-founder Charles Hoskinson discussed the conspiracy theories surrounding ETHgate and defended the actions of the authorities, claiming there was no evidence of corruption. He labeled the incidents as favoritism and highlighted the differences in business models between Ethereum and Ripple, emphasizing that Ripple serves different customers and lacks smart contracts. He expressed skepticism towards the notion that Ripple’s actions would dilute Ethereum’s goal of being regarded as a non-security. He challenged those who believed in the conspiracy theories, requesting proof of any alleged corruption through emails or meetings.
Schwartz’s Response and Community Support
David Schwartz criticized Hoskinson’s perspective, suggesting that government actions that favor certain individuals or entities can be viewed as corruption. Supporters of Schwartz, including members of the XRP Army, came out in the comment section to express their agreement, labeling the events as nothing but corruption. The controversy also brought up conspiracy theories related to Hoskinson’s time at Ethereum, suggesting that he may have hidden agendas. Hoskinson was one of the founding members of Ethereum but left the company in 2014 to establish Cardano.
Recently, Hoskinson also criticized the media for giving former FTX CEO Sam Bankman-Fried a free pass, as sympathizers provided narratives that portrayed the events leading to the exchange’s downfall as his mistake.
