Cardano (ADA) creator Charles Hoskinson is expressing concerns about the treatment of the crypto industry by US authorities.
In reaction to a tweet by Kraken founder Jesse Powell theorizing that regulators deliberately allowed “bad guys” to thrive to further their goals, Hoskinson says that it’s “starting to feel” as if the hypothesis is “accurate.”
“Honestly, it’s starting to feel like this is accurate. Fair notice was given for many of the firms that exploded months or sometimes years prior to the events.”
According to Powell, regulators allowed the bad actors to grow big since it aligns with their agenda.
“I have a theory:
Regulators let the bad guys get big and blow up because it serves their agenda.
- destroy capital/resources in crypto ecosystem
- burn people, deter adoption
- give air cover to attack good actors
The bad guys are actually on-side. Good guys are the enemy.”
Powell further says that the bad actors in the crypto space enjoy a competitive edge that the good actors do not.
“If the bad guys can run long enough without blowing up, they might just kill the good guys for you.
Bad guys operate with huge competitive advantages. They suck up users, revenue and venture capital that would otherwise have gone to good guys.
Bad guys can always be jailed later.”
In another tweet, Hoskinson says that a bill introduced in the state of Illinois that will become the Digital Property Protection and Law Enforcement Act if passed is an example of why the US is currently unattractive to the digital asset industry.
According to legal expert Drew Hinkes, the Illinois bill is hostile to the crypto industry and would “drive out blockchain node operators, miners, and validators, waste judicial resources, and confuse existing law in a quixotic attempt to protect Illinois consumers.”
Hoskinson further states that the hostility that the crypto industry is facing in the US was triggered by the collapse of FTX.
The Cardano creator says that the moment FTX went belly up,
“The FTX collapse. The minute it happened, I knew the entire industry was in for a seriously hard time.”
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