Hoskinson: ADA, XRP Should Be Treated as Commodities, Not Securities

Cardano founder Charles Hoskinson has argued that certain digital assets should be treated as commodities under U.S. crypto regulation, rather than securities. This includes ADA and XRP, which he considers 'truly commodities.'

Hoskinson made these comments while explaining why the CLARITY Act failed to advance in the U.S. Senate, citing a fundamental problem with its proposed approach to classifying digital assets.

The CLARITY Act aimed to treat a wide range of digital assets as commodities and place the CFTC at the center of crypto regulation. However, Hoskinson argues that this would be overly broad and fail to account for the differences between securities and commodities.

He points out that securities have distinct characteristics, such as disclosure requirements and market oversight, which are better handled by the SEC. In contrast, the CFTC traditionally operates as a principles-based commodities regulator.