Hoskinson: "Cardano (ADA) and XRP are True Commodities"

▲ Charles Hoskinson, Cardano (ADA), XRP/AI-generated image

Charles Hoskinson, the founder of Cardano (ADA), has argued that Cardano and XRP should be classified as true commodities, not securities.

According to The Crypto Basic, a cryptocurrency media outlet, on September 17 (local time), Hoskinson emphasized that Cardano and XRP deserve to be treated as commodities within the US virtual asset regulatory framework. Hoskinson pointed out the fundamental problem with legislative attempts to broadly classify a wide range of digital assets as commodities, stressing the need to clearly distinguish the unique characteristics of Cardano and XRP.

Hoskinson highlighted the commodity nature of Cardano and XRP based on their level of decentralization and network structure. He explained that unlike typical security tokens dependent on a centralized issuing entity, these two assets possess ecosystem-wide autonomy and decentralized governance.

In particular, XRP's legal status supports this claim. The court's recognition of XRP's non-security status when traded on secondary markets, in the lawsuit between Ripple and the US Securities and Exchange Commission (SEC), served as a key basis for commodity classification. Cardano has also achieved continuous network decentralization, laying the groundwork to move beyond security controversies.

Market experts note that Hoskinson's remarks come at a time of increasing regulatory uncertainty following the failure of the US cryptocurrency market structure bill. They assess that a clear commodity classification standard must be established for major altcoins, including Cardano and XRP, to shed regulatory risks and evolve into institutional financial products.

[Article Key Summary]

-Cardano founder Hoskinson argued that Cardano and XRP should be classified as true commodities, not securities.

-He pointed out the need for a regulatory framework that reflects the level of network decentralization and unique structures, rather than broad, blanket classifications.

-XRP's court ruling and Cardano's progress in decentralization were presented as key grounds supporting their commodity status.

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