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

The ongoing dispute between Cardano founder Charles Hoskinson and Ripple CTO David Schwartz regarding the “ETH Gate” controversy has escalated, with Schwartz recently making a subtle dig at Hoskinson.
In a recent tweet, Schwartz expressed frustration with Hoskinson’s dismissive response to concerns about the SEC’s inconsistent treatment of Ethereum (ETH) and XRP (XRP).
According to Schwartz, Hoskinson has repeatedly disregarded the notion that the SEC’s favorable regulatory stance on Ethereum influenced its strict regulatory approach towards XRP.
To recap, the SEC declared Ethereum a non-security in June 2018 through its former director of Corporation Finance, William Hinman. However, the regulatory agency labeled XRP a security in a lawsuit against Ripple in December 2020.
This inconsistent regulatory treatment of Ethereum and XRP gave rise to the “ETH Gate” theory.
Some critics argue that the theory suggests Ethereum executives established relationships with internal SEC officials to create a favorable regulatory environment for ETH. Others speculate that Ethereum also urged the SEC to target XRP and Ripple in the process.
Hoskinson, one of Ethereum’s eight founding members, characterized the initial ETH Gate theory as favoritism rather than corruption. He also emphasized that there is no evidence supporting claims that the SEC was bribed to go after Ripple and XRP.
Hoskinson’s recent comments sparked reactions within the XRP community, with Schwartz alluding to Hinman’s affiliation with Ethereum as potential evidence.
This includes Hinman’s frequent meetings with his former employer, Simpson Thacher & Bartlett, a law firm associated with Ethereum, while he was still a director at the SEC.
It is worth noting that Simpson Thacher paid Hinman over $9 million in profit sharing while he was at the SEC. These events intensified the controversies surrounding ETH Gate.
However, Hoskinson remains unconvinced by these developments, as he continues to demand evidence that the SEC was bribed 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 is unrelated 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 recently filed a lawsuit against the SEC to prevent the potential classification of ETH as a security.
This move came after the SEC issued its fourth subpoena to Consensys, indicating an active investigation into whether certain Ethereum transactions qualify as investment contracts.
In addition to Consensys, other entities facilitating ETH-related transactions have also been served similar warrants by the SEC. As a result, Consensys has sued the SEC to prevent the potential classification of ETH as a security.
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