TWEETSTORM is an occasional feature on decentralize.today where we share threads , mostly from Twitter, that we think deserve a wider audience, some are informative, some educational, some amusing and others yet are controversial...we dig these out for you so you don't have to!
Charles Hoskinson@IOHK_Charles
Recently, the most surprising thing to me has been how hard I'm being hit by some on the XRP side for my recent comments on their SEC issues. I've always been of two minds here and I guess some nuance is required to explain, which the internet always lacks (1/16)
Charles Hoskinson@IOHK_Charles
I've always taken a position that most layer 1 protocols aren't securities because it's bizarre and senseless to consider something that offers utility, is decentralized enough to have operators and builders throughout the world, and survives its founders passing Howie (2/16)
Charles Hoskinson@IOHK_Charles
People speculating on oil doesn't make oil a security anymore so than baseball cards. You can always securitize oil or baseball cards, but then you have obvious issuers and information asymmetries (3/16)
Charles Hoskinson@IOHK_Charles
Cryptocurrencies aren't immune to regulation. Markets need to be stable, well-functioning, trusted actors monitored, and cartels examined. Commodity regulation is principles based, market oriented, and global by nature. Commodities survive those who aggregate them (4/16)
Charles Hoskinson@IOHK_Charles
Ripple created something that has an ecosystem that will survive Brad, Chris, David or anyone else. The very fact that there is an independent XRP army criticizing me is proof of this reality. The ledger will run likely for decades trading value (5/16)
Charles Hoskinson@IOHK_Charles
The merits of the case should rest on the absurdity of applying securities regulation to something that has millions of independent participants in more than a 100 countries who cannot be controlled by any fiduciary of a single company (6/16)
Charles Hoskinson@IOHK_Charles
Thus it seems totally unnecessary to construct elaborate personal attacks on former and current government employees and also attack Bitcoin for its energy use or Chinese influence. Individual corruption has nothing to do with Howie (7/16)
Charles Hoskinson@IOHK_Charles
It's also counterproductive to any claim. It's like saying "well you got away with speeding because you are the cop's brother". Shouldn't one be arguing that the speed limit is wrong so neither party should be given a ticket? (8/16)
Charles Hoskinson@IOHK_Charles
Analyzing the allegations of corruption seems to imply that Ethereum should also be sued by the SEC but wasn't because of relationships. But how does this in any way solve the larger issue of cryptocurrencies being forced into a framework that makes no sense? (9/16)
Charles Hoskinson@IOHK_Charles
It's really easy to get outraged by injustices perceived or real, but outrage doesn't solve any problem. It just makes more problems and reduces the solution space as potential collaborators now can't work together. (10/16)
Charles Hoskinson@IOHK_Charles
During this year, I've spent a considerable amount of time trying to attack the root cause of our industry's issue. The legislative branch has been negligent in its duty to pass new laws to resolve the consequences of new technology. Regulators have to follow the law (11/16)
Charles Hoskinson@IOHK_Charles
There is certainly flexibility with enforcement, which often can be political, but circumstances force action. As an industry, we cannot pretend that Luna, Bitconnect, OneCoin, and tens of billions of dollars of hacks haven't happened. (12/16)
Charles Hoskinson@IOHK_Charles
We cannot ignore that trillions of dollars of value appear and disappear yearly now. In the absence of bespoke regulation, regulators will just try to apply the existing rules as they see fit regardless if it makes sense or is fair. (13/16)
Charles Hoskinson@IOHK_Charles
Hence it makes sense to change the rules of the game in order for the new economy we are building together to thrive. It's been done before. Cynicism and bullying solve nothing. It requires leadership and tireless effort. New laws are going to be passed in 2023 (14/16)
Charles Hoskinson@IOHK_Charles
Whether they enable the industry to thrive or badly harm its progress in America is entirely up to us. Our level of engagement. Our mutual collaboration. Our support for those trying to solve the actual problems. (15/16)
Charles Hoskinson@IOHK_Charles
Courts make poor substitutes for legislative holes as we've seen with even stable rulings like Roe v Wade evaporating. If we desire certainty, then we need to legislate. This is our window. Do what you will with it. (16/16)
