Cardano (ADA) Founder Calls SEC Head’s Staking Appeal Lie, Here’s Why

Cardano founder and renowned blockchain developer, Charles Hoskinson, reacted in a negative manner to a speech by the U.S. Securities and Exchange Commission head, Gary Gensler, regarding crypto regulation.

Gensler, commenting on the events surrounding the Kraken exchange, said that the commission is neutral toward cryptocurrencies and only aims to protect investors. Therefore, providers of various crypto services should simply follow the rules, register and comply, said the current head of the SEC.

In Hoskinson’s view, however, these words are lies and there is no real possibility of registering or complying for crypto service providers. You could spend millions of dollars and years and not get any answers or a viable way to do business in this area, the Cardano founder concluded.

SEC v. Kraken and staking

Recall that Kraken was previously forced to shut down cryptocurrency staking services for U.S. users and pay a $30 million fine as part of a settlement with the SEC. The main reason for the regulator’s claims was a lack of warning to users about the risks of staking cryptocurrencies.

The founder and head of the exchange, Jesse Powell, also reacted to Gensler’s call, but in a rather sarcastic manner. The entrepreneur stated that he did not know that in order to avoid a fine of tens of millions of dollars and the closure of an entire business line, he had to fill out a form on the SEC website and warn users that staking awards come from staking.