In a bold move that intertwines cryptocurrency advocacy with political endorsements, Cardano founder Charles Hoskinson has leveraged a recent lawsuit against the U.S. Securities and Exchange Commission (SEC) to express his support for Donald Trump over Kamala Harris in the upcoming U.S. elections. This comes in the wake of the SEC’s decision to appeal the Ripple ruling, a development that has sparked significant controversy within the crypto community.
Hoskinson’s comments came in response to a report by FOX Business journalist Eleanor Terrett, who detailed Crypto.com’s lawsuit against the SEC. The exchange claims that the SEC is overreaching its authority by issuing a Wells Notice accusing it of trading unregistered securities. This lawsuit aligns with a growing chorus of criticism regarding the SEC’s regulatory approach, particularly as similar questions have arisen in the ongoing SEC vs. Coinbase case.
Shifting Legal Frameworks – From The Howey Test To The “Ripple Test”
At the core of Hoskinson’s remarks is a suggestion that the legal framework governing cryptocurrencies may need to evolve. He proposed shifting the focus from the traditional Howey Test, used to determine whether a financial product is a security, to what he refers to as the “Ripple Test.” This new perspective underscores the inconsistencies in the SEC’s regulatory practices and has sparked significant debate among crypto enthusiasts and experts alike.
As the crypto landscape continues to evolve, the need for a clear and consistent regulatory framework becomes increasingly pressing. Hoskinson’s stance suggests that the current leadership under Kamala Harris and SEC Chair Gary Gensler may not provide the clarity the industry desperately seeks.
Trump’s Pro-Crypto Stance – A Potential Game Changer?
In a sarcastic post on X, Hoskinson implied that maintaining the current administration, particularly with Gensler at the helm, would not bode well for the crypto industry. In contrast, he pointed to Trump’s track record of supporting crypto initiatives, including launching his own crypto projects, as a promising alternative. Hoskinson indicated that the Republican Party, or “team red,” appears to be more aligned with the interests of the crypto space.
This sentiment echoes a broader trend of increasing support for Trump among crypto advocates. Betting markets like Polymarket reflect this shift, with Trump’s odds of winning the election at 52.4%. Many in the crypto industry are contributing to his campaign, hopeful that a return to the White House would usher in a more favorable regulatory environment.
The Future of Crypto Regulation – Speculations and Predictions
Should Trump regain the presidency, he has made it clear that he intends to fire Gary Gensler on his first day in office and end what he describes as the SEC’s “anti-crypto crusade.” This potential shake-up in leadership could herald a new era of crypto regulation, one that is more in tune with the industry’s needs and aspirations.
As discussions about possible replacements for Gensler gain traction, names like Dan Gallagher, Robinhood’s Chief Legal Officer and a former SEC Commissioner, have emerged. Gallagher’s experience in the legal and regulatory space positions him as a strong candidate for a role that could reshape the regulatory landscape for cryptocurrencies.
Also Read: Charles Hoskinson Pushes Blockchain Revolution – $3.9B Publishers Profit, Authors Earn $0
As of today, Cardano (ADA) is trading at $0.3457, reflecting a decrease of 2.53% in the past day and 3.54% over the past week. Despite the current market fluctuations, Hoskinson’s advocacy for a pro-crypto political stance signals a pivotal moment for the industry as it navigates a complex regulatory environment.
In summary, as the U.S. approaches its presidential elections, the intersection of politics and cryptocurrency regulation will continue to be a hot topic. With voices like Charles Hoskinson leading the charge, the debate surrounding the future of crypto in America promises to be both contentious and critical.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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