In a heated exchange within the cryptocurrency community, Ripple’s Chief Technology Officer, David Schwartz, has taken issue with comments made by Charles Hoskinson, the founder of Cardano. The dispute revolves around the ongoing debate regarding the U.S. Securities and Exchange Commission’s (SEC) stance on Ethereum (ETH) and the alleged favoritism associated with it, known as the ETHgate theory, media reports said.
Hoskinson addressed the ETHgate theory during an AMA session on October 8, asserting that the SEC’s actions were driven by favoritism rather than corruption. The theory posits that Ethereum received preferential treatment from U.S. regulators, particularly the SEC, leading to its classification as not a security.
Schwartz responded to Hoskinson’s claims on October 12, contending that government actors showing favoritism aligned with personal interests could be considered a form of corruption.
The Ripple CTO expressed his disagreement with the distinction between favoritism and corruption, stating on X (formerly Twitter), “I would argue that a government actor showing favoritism aligned with the personal interests of themselves and their friends is corruption.”
The dispute further deepened as community members joined the conversation, with some suggesting that Hoskinson’s inquiries about ETHgate evidence might be linked to potential concerns about his early days in Ethereum. Hoskinson, a co-founder of Ethereum, left the project in 2014 to establish Cardano after a public fallout with other Ethereum co-founders.
The clash underscores the ongoing regulatory uncertainties in the cryptocurrency space, particularly regarding the SEC’s classification of various digital assets, including Ethereum and Ripple’s XRP. The debate continues to resonate within the crypto community as different projects grapple with regulatory challenges and seek clarity on their legal status.
