Charles Hoskinson, the founder of Cardano, has raised his concerns over the regulatory complaint filed against Binance and its CEO Changpeng Zhao, citing potential dangers to financial freedom and control of potential Central Bank Digital Currencies (CBDCs).
Hoskinson highlighted what he believes to be the main reason why the SEC sued Binance, which is that it is a “problem for the traditional financial industry, which Binance is now part of”. He believes that the US government is trying to “express their disapproval of how the traditional financial industry has been dealing with unregulated trading”.
The Cardano founder also argued that while decentralized exchanges (DEx) may be more “resistant to regulation”, they still face the threat of policies that could potentially limit their freedom and ability to innovate. He believes that the SEC’s move against Binance could lead to an environment in which DExs are not able to freely operate and grow, ultimately resulting in less financial freedom.
Hoskinson also pointed out the potential implications of the SEC’s action on the development of Central Bank Digital Currencies (CBDCs). He argued that the US government could use the lawsuit as a way to maintain control over the nascent CBDC ecosystem, leading to a form of censorship in the market.
