Cardano Co-Founder Reveals The Real Reason Behind Ongoing Crypto Heat
- Cardano’s co-creator stated that the real reason behind the heat in the crypto industry was the failure of FTX.
- Kraken’s co-founder stated that regulators purposely ignore bad actors like FTX because it serves their larger agenda.
Cardano co-creator Charles Hoskinson has expressed his thoughts on recent regulatory actions against the crypto industry. The occasion for Hoskinson’s remarks was the introduction of the Digital Property Protection and Law Enforcement Act, a bill from the Illinois Senate that has already been called the most useless state law.
When asked what led to increased regulation of the cryptocurrency industry, Cardano’s co-creator stated unequivocally that it was the failure of FTX. He tweeted,
“The moment it happened, I knew the whole industry was in for a seriously tough time.”
The FTX collapse. The moment that happened, I knew that the entire industry was in for a seriously tough time
— Charles Hoskinson (@IOHK_Charles) 20 February 2023
Cardano co-founder takes on bad crypto actors
Moreover, Hoskinson agreed with Kraken’s co-founder and former CEO Jesse Powell, who stated that regulators are intentionally ignoring bad actors like FTX because it serves their larger agenda. Kraken was recently ordered to pay a $30 million fine to settle charges brought against it by the US Securities and Exchange Commission (SEC).
Honestly, it’s starting to feel like this is true. Reasonable notice was given for many of the firms that exploded months or sometimes years before the events.
— Charles Hoskinson (@IOHK_Charles) 20 February 2023
Powell emphasized the sequence of events that resulted in widespread capital destruction in the crypto industry. This leads to a lack of confidence among investors and discourages adoption. Regulators are finally getting air cover to attack entities that many crypto veterans consider to be the good guys.
Hoskinson suggested that Powell’s assessment became more credible, as fair warning was given for most companies that imploded months before the events. Several observers reminded Hoskinson to finally wake up to his skepticism about the conspiracy angle in the SEC versus Ripple case.
Blockchain lawyer Andrew Hinkes also expressed his displeasure with the development. He stated on Twitter that the Illinois Senate bill would have a negative impact on the nation’s blockchain progress. He went on to say that the bill failed to protect validators, miners and node operators.
#Illinois Senate Bill SB1887 would run out #blockchain #urge operators, #minersand #validators, waste judicial resources and confuse existing law in a quixotic attempt to protect Illinois consumers. Let’s examine the mess in one #thread:
— Drew Hinkes (@propelforward) 19 February 2023
