Cardano founder Charles Hoskinson calls Ethereum staking problematic
Cardano Founder Charles Hoskinson Calls Ethereum Staking Problematic
Hoskinson worries that the US Securities and Exchange Commission may bundle all staking protocols together “due to a fundamental misunderstanding of the actual facts of operation and design.”
Cardano (ADA) founder Charles Hoskinson tweeted on February 9 that Ethereum (ETH) staking is problematic.
According to Hoskinson, Ethereum staking is “very similar to regulated products” because it involves “temporarily transferring your assets to someone else to… generate income.” He added What:
“Locking funds, encouraging centralization, and poor protocol design are hurting the entire industry.”
Hoskinson responded to a statement by Coinbase CEO Brian Armstrong that the SEC plans to ban retail access to staking.
Hoskinson implied that Cardano’s approach to staking “makes sense for a robust proof-of-stake protocol that promotes control by the many, not the few, and creates a greater decentralized environment.”
The U.S. Securities and Exchange Commission (SEC) has stepped up its regulatory oversight of the crypto industry, bringing several cases against crypto firms. Commission Chairman Gary Gensler has previously stated that cryptocurrency exchanges that offer staking services offer services similar to lending, even if there are labeling changes.
The comment prompted several heated responses from the crypto community over the Commission’s understanding of cryptocurrency staking. Hoskinson said:
“All proof-of-stake protocols can be lumped together due to a fundamental misunderstanding of the real facts of operation and design. [of staking]”.
Meanwhile, this is not the first time Hoskinson has criticized Ethereum staking. The founder of Cardano has previously described the blockchain network as “Cryptocurrency Hotel California.”
Credit : cryptoslate.com