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Charles Hoskinson and Adam Back disagree on Bitcoin decentralization

Cardano founder Charles Hoskinson expressed bewilderment at the SEC’s position regarding the agency’s lack of attention to Bitcoin and the treatment of other cryptocurrencies as securities. Industry pioneer and Blockstream CEO Adam Back responded to this.

Hoskinson questioned the decentralization of digital gold. He suggested that a 51% attack would only require three subpoenas [на владельцев крупнейших майнинг-пулов].

“Explain this to me [разницу между биткоином и другими криптовалютами]like I’m five years old. Take the Howie test,” he suggested.

Back responded to the question by pointing to the lack of an ICO for digital gold as a lack of SEC treatment as a security.

“It’s very simple: Bitcoin didn’t have an ICO, most people thought it had no value, the asset was mined from scratch, it’s decentralized, there’s no CEO. Behind the ICO is a non-profit organization, corporation, etc. This applies to Cardano, Ethereum and others that pass the Howey test, unlike Bitcoin, which is a commodity,” wrote the CEO of Blockstream.

Hoskinson pointed out to Back Cardano’s lack of initial coin distribution.

“Distribution [токенов] happened through an airdrop, then thousands of people who had never met each other traded ADA on exchanges and used Cardano for their projects. Selling a voucher for another asset outside the United States for yen at prices calculated in Bitcoin without the participation of at least one American resident is not an ICO,” Hoskinson countered.

The founder of Cardano was accused of lying and recalled the price of ADA for investors when it was placed in 2016.

Beck expressed confidence that Hoskinson had lawyers who should have advised him not to touch on certain topics

“Premining and airdropping, as well as market making, meet the ICO criteria. Plus the obvious dependence of the management team on profit expectations, etc.[ascompliancewiththeHoweytest”henoted[каксоответствиеусловиямтестаХауи» —обратилвниманиеон

In November, in an SEC complaint against Kraken, the regulator listed a number of tokens it deemed to be unregistered investment contracts, including ALGO, MATIC and NEAR.

In June, the Commission accused Coinbase of violating securities laws. According to the department, a number of tokens on the exchange fit this definition: SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO.

In the SEC’s lawsuit against Binance, the regulator qualified the following assets as securities: SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO and AXS.

Source: Cryptocurrency

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