- Charles Hoskinson maintains that staking ETH looks like regulated products.
- Cardano founder believes locking funds and centralization hurts the crypto industry.
- Coinbase CEO stands against the SEC’s supposed intention to ban crypto staking.
Charles Hoskinson, the Cardano network founder, reinforces his earlier argument that the new Ethereum staking protocol looks “a lot like regulated products,” taking sides with the US Securities and Exchange Commission (SEC).
In a video shared on Twitter today, Hoskinson argued that even if Cardano, Polkadot, Ethereum, and Avalanche, are all staking systems, they all have different modes of operation that may translate to varying regulatory overhead.
The Cardano founder believes temporarily giving up assets to another party to do some work on a person’s behalf to generate revenue, as in the case of Ethereum looks like regulated products.
However, Hoskinson noted that Bitcoin and Cardano staking models are markedly different. He expressed that the custody of the underlying asset in Bitcoin is the hash resources, the actual work pillow. “The assets still belong to you. You only delegated them to the network work collectively to build a block,” the Cardano founder contended.
These arguments began yesterday when Brian Armstrong, the CEO of Coinbase crypto exchange, tweeted about a rumor that the SEC was getting rid of crypto staking for retail customers. Armstrong believed such action would be a terrible path for the United States.
While the Coinbase CEO contended that staking was a crucial innovation in crypto for allowing users to participate in running open crypto networks, the Cardano founder expressed contrary views. He said: “Locking funds, encouraging centralization, and poor protocol design hurts the whole industry.”
Hoskinson further expressed contempt that all proof of stake protocols would be lumped together ‘due to a fundamental misunderstanding about the facts of operation and design.”