Ripple Labs’ Chief Technology Officer (CTO), David Schwartz, has responded to statements made by Charles Hoskinson, the founder of Cardano, concerning the “ETH Gate” theory.
Hoskinson asserted that the drafts of William Hinman’s speech do not substantiate corruption but indicate favouritism. He underlined that no evidence supports allegations that Ethereum officials influenced the SEC through bribery to take action against Ripple Labs.
Ripple CTO Reacts
In response to Hoskinson’s recent remarks about the Hinman emails, reactions emerged from both XRP community members and senior Ripple executives.
In contrast to Hoskinson’s assertions, Schwartz, the CTO of Ripple, offered a differing viewpoint. He emphasised that corruption occurs when “a government actor shows favouritism aligned with the personal interest of themselves and friends.”
Hinman’s Affiliation with Ethereum
It’s worth noting that the Hinman emails revealed that the former director of the SEC’s Corporation Finance unit had meetings with Ethereum co-founders Vitalik Buterin and Joseph Lubin before delivering the speech in which he categorised ETH and BTC as non-securities.
Despite being cautioned by top SEC officials not to make such declarations, Hinman declared these assets as non-securities. Consequently, many individuals speculated that Hinman might have received financial incentives from Ethereum officials to make these declarations.
Furthermore, his association with Simpson Thacher, an Enterprise Ethereum Alliance (EEA) member, came to public attention. Reports indicated that Hinman received over $15 million from Simpson Thacher during his tenure at the SEC.
Hoskinson Responds to ETHGate Theory
It’s essential to note that the Hinman speech played a pivotal role in the emergence of the ETHGate theory. To provide context, “ETH Gate” is a theory suggesting that Ethereum’s core team cultivated relationships with influential SEC officials to secure favourable regulations for ETH, giving it an advantage over other cryptocurrencies.
This allegation has sparked extensive debates within the industry, drawing the participation of prominent figures in the crypto space. During a recent Ask-Me-Anything (AMA) session, Hoskinson discussed the ETH Gate theory, highlighting that it encompasses two distinct concepts.
On the one hand, some cryptocurrency enthusiasts contend that the ETH Gate pertains to Ethereum officials leveraging their connections to persuade SEC insiders to establish a regulatory environment favourable to the cryptocurrency.
On the other hand, Hoskinson pointed out that some crypto community members believe the theory revolves around Ethereum officials allegedly bribing the SEC to initiate actions against XRP, which subsequently led to the Ripple lawsuit.
“These are very different things. It is one thing to use relationships to protect your own thing. It is another thing to use relationships in a conspiracy to attack a competitor.”