In one live streaming on November 25, Charles Hoskinson, the founder of Cardano and CEO of Input Output Global (IOG), raised serious concerns about the stablecoin project in Wyoming, highlighting what he considers procedural misconduct and unfair exclusion from the Cardano blockchain.
Cardano founder speaks out
Hoskinson began by recounting the initial optimism surrounding the Wyoming Legislature’s passage of a crypto bill nearly two years ago, which aimed to allow the state to issue its own asset-backed stablecoin. “Almost immediately after this proof-of-concept bill was advanced, many people in the Wyoming government and outside of government contacted Input Output to ask our advice and suggestions on how we wanted to work with the government” , he stated.
Over the past year and a half, IOG has participated extensively in the development phase of the project. “We decided to be part of the subcommittee and have provided a great deal of advice in many, many meetings over almost a year and a half on things that needed to be done for such a project to be successful,” Hoskinson revealed. The discussions covered key aspects such as issuance and redemption processes, compliance, technology standards and strategies to compete with established stablecoins such as Circle And Tether.
However, Hoskinson expressed dismay over the appointment of an executive director who he said was supportive of the Ethereum ecosystem, contrary to the intent of the bill. “By law, this executive director came from the Ethereum ecosystem with, I suspect, some background in Polygon, and made statements from the very beginning that the coin should be issued first in the Ethereum ecosystem, which was directly contrary to the authors’ intent. of the bill that wanted the Wyoming-based stablecoin to be multi-chain,” he claimed.
He criticized the committee’s process for selecting blockchain platforms, which he described as opaque and exclusionary. “They decided to create their own criteria and act as judge, jury and executioner in a very short period of time through a pre-qualification process,” Hoskinson said. He claimed that Cardano was excluded based on claims that it lacked certain capabilities, without being given the opportunity to demonstrate otherwise. “There was no opportunity for public comment, there was no opportunity for appeal and rebuttal,” he emphasized.
Hoskinson did not mince his words on the legality of the committee’s actions. “I believe it is both illegal and unconstitutional and violates the state constitution and the good faith of the laws of the state,” he stated. He argued that the process “gave an unfair competitive advantage to other ecosystems” and that “Wyoming’s government has engaged in picking winners and losers.”
Hoskinson highlighted the wider impact, pointing out that numerous other blockchain platforms were similarly excluded. “It’s not just Cardano who was excluded; More than 29,900 blockchains were also excluded in this pre-qualification process,” he noted. He expressed concern that the commission’s actions could undermine Wyoming’s reputation as a crypto-friendly state. “This is the first time in the history of the state where an agent of the state has made an arbitrary and capricious decision to exclude people from participating,” he said.
Looking ahead, the Cardano founder indicated that IOG is exploring all available options, including possible legal action. “Going forward, there are many options, and we at IOG will pursue them – options at our discretion,” he stated. He said several Wyoming lawmakers are “deeply displeased and disturbed by this behavior” and are questioning whether the project should be rescinded or halted.
Despite his frustrations, Hoskinson reaffirmed his commitment Wyoming and its potential as a hub for blockchain innovation. “I really believe that Wyoming is still a great place to start a cryptocurrency company, and I really believe that there are a lot of people out there with very good intentions,” he said. He emphasized the importance of fair treatment, especially given IOG’s significant investments in the state. “I would like to believe that these investments have been sensible and that we will be treated fairly and that the rule of law will prevail,” Hoskinson said.
He also warned that Wyoming risks losing its competitive advantage if such practices continue. “If Wyoming wants to keep the crypto companies based there, they need to ensure there is a perception that this is still the best place, including strong adherence to the rule of law and a government that doesn’t pick winners. and losers,” warned the Cardano founder.
Concluding his remarks, Hoskinson expressed hope for a resolution but remained firmly committed to justice. “We will figure it out and solve it because this is just the beginning; it is certainly not the end,” he claimed. ‘Don’t forget, I live there. I’m not going anywhere.”
At the time of writing, ADA was trading at $1.04.
Featured image from YouTube, chart from TradingView.com