Disagreement Arises Between Ripple CTO David Schwartz and Cardano Founder Charles Hoskinson Regarding Controversial ETH Gate Theory
Ripple CTO David Schwartz and Cardano founder Charles Hoskinson recently found themselves at odds over the controversial “ETH Gate” theory, resulting in a clash between these two cryptocurrency heavyweights.
The ETH Gate debates resurfaced during an X Spaces event featuring Hoskinson over the weekend. According to Hoskinson, there are two narratives surrounding this controversial theory. The first narrative suggests that Ethereum officials established connections with internal SEC staff to gain favorable regulations for ETH compared to other cryptocurrencies. On the other hand, the second narrative claims that Ethereum utilized its connections with the SEC to initiate legal actions against Ripple and XRP.
Hoskinson emphasized that the second narrative is a conspiracy theory with no evidence to support the argument that the Ethereum community bribed the SEC to harm Ripple and XRP. This belief of Hoskinson has generated tension between him and the XRP community.
In response to Hoskinson’s comment, Schwartz raised questions about the evidence supporting the theory that Ethereum influenced the SEC to plot against Ripple and XRP. Schwartz focused on the relationship between former SEC official William Hinman and Ethereum. He questioned whether Hinman was intimately involved, had a financial interest in Ethereum, recused himself, or if these factors are not considered evidence for some reason.
Schwartz also asked Hoskinson if Hinman’s affiliation with Simpson Thacher & Bartlett could be considered potential evidence that influenced the SEC’s lawsuit against Ripple. Before joining the SEC, Hinman was a partner at Simpson Thacher & Bartlett LLP, a member of the Enterprise Ethereum Alliance. During his tenure at the SEC, Hinman had multiple meetings with Simpson Thacher staff, including in 2018 when he delivered a controversial speech stating that ETH is not a security.
Hoskinson accused Schwartz of trying to incite the mob with his comments and clarified that his grand conspiracy statement is in reference to allegations from XRP enthusiasts that Ethereum bribed the SEC to target Ripple. He emphasized that no matter how many times Schwartz tries to conflate the two statements, it does not change reality.
Schwartz argued that the conventional ETH Gate arguments have focused on how the regulatory commission interpreted and concluded regulatory lines, appearing to favor Ethereum and portray XRP negatively.
This disagreement over the ETH Gate issue is not the first between Hoskinson and Schwartz. Last year, Schwartz publicly disagreed with Hoskinson after he claimed that Hinman’s speech did not prove corruption but rather favoritism.
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