A clash has erupted between the Ripple community and Cardano’s founder, Charles Hoskinson, regarding the definition of corruption in the context of the ETHgate scandal. The tension centers around the United States regulators’ determination that Ethereum (ETH) is not a security, a decision that has fueled conspiracy theories.
Charles Hoskinson addressed the ETHgate theory during an AMA session on October 8, asserting that the actions of U.S. regulators were not indicative of corruption. ETHgate is a conspiracy theory suggesting that Ethereum received preferential treatment from U.S. regulators, particularly the U.S. Securities and Exchange Commission (SEC), despite its longstanding assertion that ETH is not a security.
Even though SEC director William Hinman had declared Ether as not a security in 2018, U.S. regulators have grappled with defining the status of other cryptocurrencies, including XRP. This ambiguity has hindered the adoption of these digital assets.
Hoskinson argued that Hinman’s regulatory stance on Ethereum, as conveyed in drafts released in June 2023, indicated favoritism rather than corruption. He emphasized that this is a characteristic of how the internet operates and cannot be rectified.
Hoskinson underscored that there is a lack of concrete evidence demonstrating anything beyond favoritism on the part of the SEC, questioning the existence of emails or meetings that would prove otherwise. He also pointed out the distinctions between XRP and Ethereum, including their customer bases, smart contract capabilities, and business models.
This stance by Hoskinson quickly drew responses from the XRP community, particularly Ripple’s Chief Technology Officer, David Schwartz. The crux of their disagreement revolved around the definition of corruption.
Schwartz contended that government actors showing favoritism in alignment with their personal interests and those of their associates should be regarded as corruption. He stated this on social media, and community members echoed this sentiment.
Some community members suggested that Hoskinson’s inquiries about ETHgate evidence might be motivated by concerns about his own history in Ethereum. Hoskinson, in addition to his role in Cardano, was one of Ethereum’s eight co-founders and briefly served as Ethereum’s CEO from 2013 to 2014 before parting ways with the project due to disagreements with the other co-founders. This history could be a source of interest and debate in the ongoing clash between Ripple and Cardano supporters.
