Cardano Founder Charles Hoskinson Says Ripple Had Funds for SEC Legal Fight

TLDR

• Charles Hoskinson stated that he publicly opposed the SEC lawsuit against Ripple from the start.
• He argued that Ripple had billions of dollars in XRP reserves to fund its own legal defense.
• Hoskinson rejected claims that crypto leaders should have provided financial support to Ripple.
• He pointed to Ripple’s $1.2 billion Hidden Road acquisition as proof of its financial strength.
• Hoskinson criticized Ripple’s support for the Clarity Act and questioned its industry advocacy.

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Cardano founder Charles Hoskinson has responded to fresh criticism from XRP supporters over his stance during Ripple’s SEC lawsuit. He stated that he opposed the enforcement action but rejected claims that he should have provided financial backing. He also questioned Ripple’s support for the Clarity Act and its broader industry position.

Ripple and SEC Battle: Hoskinson Rejects Funding Criticism

Charles Hoskinson addressed claims that he failed to support Ripple during its legal dispute with the U.S. SEC. He said critics misrepresented his public record and ignored his past interviews. He stated, “I publicly opposed the SEC’s lawsuit against Ripple from the beginning.” He maintained that his position was clear and consistent.

However, some XRP community members argued that public statements were not enough. They claimed leading figures should have offered direct financial assistance. Hoskinson rejected that view and pointed to Ripple’s large XRP holdings. He said the company controlled a massive pre-mine worth billions of dollars. He added that those reserves gave Ripple the means to fund its own defense.

Hoskinson also cited Ripple’s $1.2 billion acquisition of Hidden Road. He said the transaction showed the company’s strong financial position. He argued that Ripple did not require outside contributions. He stated that expecting competitors to finance the case lacked logic.

The debate intensified on social media platforms. XRP supporters questioned his focus on token distribution. They challenged his claims about Ripple’s control over more than 70% of the XRP supply.

Some critics also referenced Ethereum’s early token sale. They asked why Hoskinson rarely discusses Ethereum’s ICO allocations. They suggested founders’ distributions in early projects deserved equal scrutiny.

Hoskinson responded by warning about declining discourse in the sector. He said social media narratives distort complex regulatory matters. He argued that polarized debates weaken constructive engagement.

Clarity Act Dispute Deepens Rift

Hoskinson expanded his criticism to Ripple’s support for the Clarity Act. He argued that the current bill version contains structural flaws. He claimed it could shield established networks while exposing smaller projects. He said the draft might classify newer tokens as securities.

He also warned that certain provisions could impose liability on open-source developers. He stated that the legislation could reduce competition within crypto markets. He argued that Ripple supports the measure because it aligns with its own interests.

Ripple and CEO Brad Garlinghouse continue to endorse the Clarity Act. Garlinghouse has stated that “clarity is better than chaos” in regulatory matters. He has also projected that lawmakers could pass the bill in the second quarter.

Recent policy discussions have also restricted stablecoin yields. Ripple has maintained its position despite criticism from industry leaders. Coinbase CEO Brian Armstrong has also raised concerns about the legislation’s scope.

Hoskinson maintains that his criticism targets policy, not rivalry. He denied acting out of competition with XRP or ADA. He reiterated that Ripple possessed sufficient capital throughout the SEC proceedings.

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