Cardano founder Charles Hoskinson voiced his criticism regarding Ripple Labs’ RLUSD stablecoin approval by the New York Department of Financial Services (NYDFS) on December 10. He mentioned how the situation is disadvantageous for XRP. His comments stemmed from an ongoing debate about Wyoming’s decision to exclude Ripple’s RLUSD from its stablecoin issuance process, a move Hoskinson labeled as biased.
Cardano Founder’s Take on XRP, RLUSD
Hoskinson responded to cryptocurrency influencer Ben Armstrong, known as Bitboy, who questioned the XRP community’s reaction to Wyoming’s decision. Hoskinson argued that XRP was unfairly sidelined in favor of competitors such as Circle. He stated, “XRP was a huge loser in this biased process. They had an alternative system to Circle, who was the winner.”
Ripple’s RLUSD stablecoin, which recently gained approval in New York—a state known for its stringent regulatory framework—was deemed ineligible by Wyoming. Hoskinson contended that had Ripple been allowed to participate, Wyoming could have significantly benefited. He suggested, “The state of Wyoming would be issuing millions of dollars of tokens on RLUSD infrastructure, thereby pushing liquidity up dramatically on lost major exchanges.”
How much have you been hit in the head? XRP was a huge loser in this biased process. They had an alternative system to Circle who was the winner. Had they been eligible to bid, the state of Wyoming would be issuing millions of dollars of tokens on RLUSD infrastructure, thereby…
— Charles Hoskinson (@IOHK_Charles) December 11, 2024
Hoskinson further alleged that powerful players, including ConsenSys, Circle, and BlackRock, influenced the outcome. He claimed, “Consensys, Circle, and BlackRock made sure that didn’t happen. The commission said that despite what New York State said (the most rigorous regulation in the world), XRPL isn’t suitable for their stablecoin.”
The discussion also drew reactions from the broader crypto community. One user criticized Wyoming’s exclusion as an example of regulatory bias, stating, “If New York, with its strict regulations, approved RLUSD, there’s no reason Wyoming couldn’t have considered it.”
Another user dismissed the relevance of New York’s approval, suggesting Wyoming likely disregarded it due to mistrust of the state’s regulatory framework. Hoskinson responded sharply, pointing out the irony: “Which is why they handed the implementation of the coin to ConsenSys in New York?”
The RLUSD saga highlights tensions in the crypto sector as regulators grapple with balancing innovation and competition. Ripple’s exclusion raises questions about fairness and transparency in state-level decision-making processes.
Also Read: Can XRP Price Hit $5 After Ripple’s RLUSD Launch?
