Ripple’s Chief Technology Officer Criticizes Cardano Founder’s Response to ETH Gate, Deeming it Absurd

The ongoing dispute between Cardano founder Charles Hoskinson and Ripple CTO David Schwartz regarding the “ETH Gate” controversy has escalated, with Schwartz recently throwing shade at Hoskinson.
In a recent tweet, Schwartz expressed frustration over Hoskinson’s dismissive response to concerns about the SEC’s inconsistent treatment of Ethereum (ETH) and XRP (XRP).
Schwartz believes that Hoskinson has repeatedly ignored the idea that the SEC’s favorable regulatory stance on Ethereum influenced its strict regulations against XRP.
To recap, the SEC declared Ethereum a non-security in June 2018 through its former director of Corporation Finance, William Hinman. However, the agency deemed XRP a security in a lawsuit against Ripple in December 2020.
The SEC’s inconsistent treatment of Ethereum and XRP gave rise to the “ETH Gate” theory.
Some critics argue that the theory suggests Ethereum executives developed relationships with internal SEC officials to create a favorable regulatory environment for ETH. Others speculate that Ethereum may have also asked the SEC to target XRP and Ripple.
Hoskinson, one of Ethereum’s original founding members, dismissed the first ETH Gate theory as favoritism rather than corruption. He also emphasized that there is no evidence supporting allegations of bribery involving the SEC and Ripple or XRP.
Hoskinson’s recent comments on the matter sparked reactions within the XRP community, with Schwartz pointing to Hinman’s ties to Ethereum as potential evidence. This includes Hinman’s consistent meetings with his former employer, Simpson Thacher & Bartlett, a law firm associated with Ethereum, while he was still at the SEC.
It is worth noting that Simpson Thacher paid Hinman over $9 million in profit sharing while he was with the SEC. These events further fueled the controversies surrounding ETH Gate.
However, Hoskinson remains unconvinced by these developments and continues to demand evidence of the SEC’s alleged bribery to target XRP.
In response, Schwartz stated that Hoskinson has already received the answer he is seeking but maintains that the SEC’s fair treatment of ETH has no connection to its harsh actions against XRP.
Meanwhile, as the Ripple lawsuit regarding the status of XRP nears its conclusion at the district court level, Ethereum has filed a lawsuit against the SEC to prevent it from potentially classifying ETH as a security.
This action follows the SEC’s issuance of a fourth subpoena to Consensys, indicating an ongoing investigation into whether certain Ethereum transactions constitute investment contracts.
Apart from Consensys, the SEC has also served similar warrants to other entities involved in ETH-related transactions. As a result, Consensys has sued the SEC to prevent the potential classification of ETH as a security.
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