According to Cardano’s Hoskinson, the Real Reason U.S. Authorities Are Stepping Up the Pressure on Crypto
Co-creator of Cardano Charles Hoskinson has highlighted the actual reason authorities in the United States are targeting cryptocurrencies in recent weeks. Some recent legislative efforts, including a new Illinois Senate Bill, want to compel blockchain miners and validators to do absurd activities, such as modifying or rescinding transactions if forced to do so by a state court.
In a year of crypto upheavals, the newly proposed Digital Property Protection and Law Enforcement Act of the Illinois Senate triggered yet another quake.
The measure, which was surreptitiously proposed and only recognized by Florida attorney Drew Hinkes, would permit the reversal of smart contract-based blockchain transactions. The law would apply to any “blockchain network that conducts an in-state blockchain transaction.”
Hinkes described the measure as “the most ineffective specific law he’s ever seen pertaining to blockchain and crypto assets.” The Act is also a striking shift in tone for a state that had previously been pro-innovation.
This law proposed by Illinois Senator Robert Peters was met with similar criticism from Cardano’s Charles Hoskinson. When asked what prompted the heightened attack on crypto by U.S. authorities, Hoskinson said astutely that FTX’s failure was the catalyst. FTX was a crypto exchange headquartered in the Bahamas and the crown jewel of Sam Bankman-Fried’s company.
“As soon as that occurred, I realized the whole business was in for a difficult moment,” Hoskinson added. Hoskinson agrees with Kraken co-founder and former CEO Jesse Powell’s observation that authorities deliberately turn a blind eye to harmful actors like FTX because it fits their big objective.
Powell emphasized the chain of events in which the explosions of the bad guys caused massive capital devastation in the cryptocurrency business. This severely burns investors and limits adoption. Ultimately, authorities acquire “air cover” to strike firms that many crypto veterans consider to be the “good guys.”
Kraken has been a pillar of the cryptocurrency industry for a decade and a consistently trustworthy player.
Hoskinson stated that Powell’s perspective was starting to seem plausible, since the majority of corporations that collapsed provided enough warning months or years in advance. This reality contains several challenging lessons regarding the larger trend of crypto policy in the United States.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.