The real reason behind the crypto heat, according to Cardano’s co-founder
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 Senate bill in Illinois that has already been dubbed the most unworkable state law.
When asked what prompted increased regulation of the cryptocurrency industry, Cardano’s co-creator stated unequivocally that it was the failure of FTX. He tweeted,
“The minute it happened, I knew the entire industry was in for a seriously hard time.”
<p lang=«en» dir=«ltr» xml:lang=«en»>The FTX collapse. The minute it happened, I knew the entire industry was in for a seriously hard time— Charles Hoskinson (@IOHK_Charles) February 20, 2023
Moreover, Hoskinson agreed with Kraken co-founder and former CEO Jesse Powell, who stated that regulators intentionally ignore bad actors like FTX because it serves their larger agenda. Kraken was recently ordered to pay a $30 million fine in order to settle charges brought against it by the U.S. Securities and Exchange Commission (SEC).
<p lang=«en» dir=«ltr» xml:lang=«en»>Honestly, it's starting to feel like this is accurate. Fair notice was given for many of the firms that exploded months or sometimes years prior to the events. https://t.co/pPrDoEXLIw— Charles Hoskinson (@IOHK_Charles) February 20, 2023
Powell emphasized the sequence of events that resulted in extensive capital destruction in the crypto industry. This leads to a trust deficit among the investors and discourages adoption. Regulators eventually get air cover to attack entities that many crypto veterans consider to be the good guys.
Hoskinson suggested that Powell’s assessment was becoming more credible, as
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