2 months ago 1 min read

The Founder of Cardano (ADA) Calls the SEC Head's Staking Appeal a LIE, and Here's Why


Charles Hoskinson, the founder of Cardano and a well-known blockchain developer, expressed his displeasure with the U.S. Gary Gensler, the chairman of the Securities and Exchange Commission, on crypto regulation.

In response to the circumstances surrounding the Kraken exchange, Gensler stated that the commission is unaligned with cryptocurrencies and solely seeks to safeguard investors. The current head of the SEC advised suppliers of various crypto services to just abide with the law, register, and comply.

Hoskinson believes that these statements are false and that there is no chance for crypto service providers to register or abide by the regulations. The founder of Cardano came to the conclusion that you might spend millions of dollars and years on this problem without ever receiving any solutions or a workable business model.

Staking: SEC v. Kraken

Recall that as part of a settlement with the SEC, Kraken was previously compelled to stop offering cryptocurrency staking services to users in the United States and pay a $30 million fine. The regulator's concerns were primarily motivated by a failure to inform consumers of the dangers of staking bitcoins.

Jesse Powell, the exchange's founder and leader, responded to Gensler's call as well, but with some sarcasm. The businessman said that he was unaware that he needed to fill out a form on the SEC website and inform customers that staking prizes result from staking in order to avoid a fine of tens of millions of dollars and the closure of an entire business line.

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