Charles Hoskinson: Perhaps Ethereum Is Now Security

Charles Hoskinson, the creator of Cardano, suggested during a recent discussion on Twitter Spaces, which was moderated by Perianne Boring, the founder of the Chamber of Digital Commerce, and Teresa Goody Guillén, a partner at BakerHostetler, that the U.S. Securities and Exchange Commission might view Ethereum as an unregistered security after the cryptocurrency switched to the proof-of-stake consensus algorithm.

“Now, it’s a proof-of-stake system…and then, perhaps, now it is a security. Who knows? You know, they are not going to take an official position one way or the other,” he said.

Charles Hoskinson criticized the existing atmosphere of regulation-by-enforcement

Charles Hoskinson has criticized the existing atmosphere of regulation-by-enforcement and emphasized the necessity for “some type of guidance” from lawmakers over how cryptocurrencies must be categorised.

“It’s frustrating to me because I just want to know what the standards are,” Charles Hoskinson added.

The validity of Ethereum as a security has long been a contentious topic. William Hinman, a senior SEC employee, claimed that the second-largest cryptocurrency was not a security in 2018.

Nevertheless, the organization backed away from his remarks while it fought Ripple in court. Recently, CFTC Chair Rostin Behnam reaffirmed his opinion that the second-largest cryptocurrency is a commodity, putting it on par with Bitcoin.

Behnam added that Gensler had a different perspective on the matter though. Gensler has not yet made any public remarks about Ethereum’s regulatory situation. A few years before taking over as the SEC’s chairman, he did, however, indicate that it possessed the characteristics of a security.

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