Charles Hoskinson, the founder of Cardano, expressed concern over the US Securities and Exchange Commission (SEC) lawsuit against Binance. Hoskinson highlights the threats to financial freedom that this entails. In addition, he raises the possibility that the SEC is taking this action with the intention of promoting and implementing its own Central Bank Digital Currency (CBDC).
Government wants more control over people
Charles Hoskinson, the founder of Cardano, has recently expressed concern about the regulatory charges against Binance and its CEO, Changpeng Zhao. Hoskinson points to what he sees as a potential threat to the future of cryptocurrencies in the United States.
Hoskinson shared his thoughts through a series of tweets, in which he brought up the notion of “chokepoint 2.0”. By this he meant the potential consequences that these developments could have for financial freedom.
The voluminous indictment, running at a whopping 136 pages, was another major focus for Hoskinson. He raised the possibility that this could be part of a larger, strategic plan to gain greater control over people’s financial lives.
I am currently reviewing the SEC’s extensive indictment, which is over 130 pages long. It appears to me as the latest in a series of efforts aimed at implementing “chokepoint 2.0” in the United States. It seems that the ultimate goal is to introduce a Central Bank Digital Currency (CBDC) based on a certain agenda, in collaboration with a select number of banks, achieving end-to-end control…
—Hoskinson
The SEC recently filed a lawsuit against Binance and Coinbase. It has done so because they believe the exchanges are guilty of allowing trading in tokens that the regulator described as unregistered securities.
Hoskinson’s concerns about the lawsuit against Binance
Charles Hoskinson, the founder of Cardano, has expressed concern about the intentions behind the SEC’s lawsuit against Binance. He believes the ultimate goal is the creation of a central bank-backed digital currency (CBDC). This CBDC would be specifically tailored to a select group of influential banks, giving these agencies full control over individuals’ financial activities.
According to Hoskinson, this regulatory action transcends simple debate. He sees it as a philosophical conflict about the existence and fundamental principles of cryptocurrencies.
He argues that a select group of unelected individuals have found certain concepts such as self-sovereignty, wallet ownership, and economic power inadequate for the masses. He believes that these privileges are meant to be concentrated in the hands of a few privileged people.
Hoskinson points to the ongoing battle between freedom and authoritarianism. He emphasizes that the current situation reflects an ongoing struggle between different actors, technology and rhetoric.
At the same time, Hoskinson also sees this particular situation as an opportunity for the crypto industry. He argues that the industry can come together and create a unified set of rules and guidelines to prevent the United States from sliding into a dystopian state à la George Orwell’s “1984.”
The same concern was expressed last year by US congressional candidate January Walker. Walker stressed the importance of solidarity and urged the entire crypto community to support Ripple. She warned that what happens to XRP could happen to other digital assets in the future.