Cardano Founder Charles Hoskinson Criticizes SEC Amid Coinbase Legal Disputes

Charles Hoskinson, the visionary founder of Cardano (ADA), has taken a firm stance against the U.S. Securities and Exchange Commission (SEC) amidst its escalating legal confrontation with cryptocurrency exchange Coinbase. Leveraging his platform on X (formerly Twitter), Hoskinson openly mocked the SEC’s relentless demand for crypto protocols and companies to “register,” pointing out the apparent contradictions and shortcomings of the regulator’s approach.

“I’m sure Gary can come in and register 🙂,” Hoskinson quipped on September 12, 2025, referencing Gary Gensler, the former SEC chairman, with sharp sarcasm aimed at the agency's controversial strategies.

The Dispute Over the SEC’s “Registration” Requirements

The SEC has long urged digital asset stakeholders, including exchanges and blockchain projects, to comply with securities laws by registering their operations under regulatory scrutiny. Former chairman Gary Gensler often repeated this mantra during his tenure, emphasizing how critical compliance was for ensuring transparency and protecting investors.

However, Hoskinson called attention to glaring inconsistencies in the SEC’s own practices while commenting on allegations raised by Coinbase’s chief legal officer, Paul Grewal. The crypto exchange has accused the SEC of destroying critical internal documents that could serve as pivotal evidence in their ongoing legal battles.

In a bold move, Coinbase has pursued expedited discovery and requested court-imposed sanctions against the SEC for its alleged destruction of evidence. The exchange has further demanded that the commission submit any remaining documents relevant to the case for greater transparency.

Hoskinson echoed these grievances, stating, “The SEC fines crypto companies billions for failing to comply with record-keeping regulations, yet the agency itself violates the same standards. Maybe Gensler should come and register himself.”

His remarks underscore frustrations within the blockchain community, which has repeatedly criticized the SEC’s opaque enforcement tactics and what it sees as an inconsistent application of regulations.

Coinbase’s Legal Battles: A Fight for Industry Clarity

As one of the largest cryptocurrency exchanges globally, Coinbase has taken center stage in several high-profile legal disputes, positioning itself as both a defender of its own operations and an advocacy leader for regulatory clarity within the cryptocurrency sector.

Among its myriad challenges, Coinbase recently filed a legal opinion contesting a lawsuit from the Federal Deposit Insurance Corporation (FDIC). The case stems from allegations that federal regulatory agencies, including the FDIC, are actively working to marginalize crypto companies and force them out of traditional finance.

In addition to its federal-level battles, Coinbase is also fighting back against state initiatives seeking to introduce independent cryptocurrency regulations. Notably, Coinbase has confronted attempts by Oregon to impose an independent regulatory framework, arguing that states lack the jurisdiction to enforce crypto compliance over federal law.

The company has framed its legal efforts as necessary steps toward achieving a coherent and fair regulatory infrastructure. By navigating these contentious cases, Coinbase hopes to create greater clarity for the broader cryptocurrency ecosystem while protecting innovation and compliance within the financial sector.

Crypto Industry Stands at Regulatory Crossroads

Hoskinson’s criticism of the SEC and Coinbase’s ongoing legal challenges highlight a pivotal moment for the cryptocurrency industry. Companies, advocates, and policymakers alike are grappling with the complexities of regulatory oversight amid rapid technological evolution.

While the SEC continues to enforce strict measures on digital asset companies, players in the space are pushing for reforms to ensure regulations are equitable, transparent, and conducive to innovation.

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