Cardano fears that the US seeks to eliminate crypto and push CBDC

Recently, the US SEC attracted a lot of criticism for its complaint against Binance, which will lead to another lengthy legal battle, since the world’s largest exchange refused to settle. However, Cardano (ADA) views it as a cause for concern, rather than just another attempt by the SEC to accuse a crypto firm of dealing with unregistered securities.

The US is seeking control over digital finance

According to Cardano, this might simply be a part of a larger plan to implement “operation chokepoint 2.0” against cryptocurrencies in the US. Some have even voiced theories that this might lead the government to seize total control over the people’s financial lives. These theories claim that the US government might be trying to eliminate decentralized cryptocurrencies and replace them with central bank digital currencies (CBDCs).

In this scenario, the authorities would know every transaction, while users would completely lose their financial privacy. Even Cardano’s founder, Charles Hoskinson, provided his thoughts on the matter. He said that the regulatory event is more than a debate about Binance’s compliance with the law, or guidance.

https://twitter.com/IOHK_Charles/status/1665780536177217537

He views it as a political and philosophical disagreement that could affect the future of the entire crypto industry, its existence, and everything it stands for.

Hoskinson explained that he believes that an unelected group has come to a decision that self-sovereign identity and freedom to control one’s own money should be removed from the masses. It should be a privilege for the select few, which is the exact opposite from what the crypto sector is trying to achieve.

The crypto industry will survive, says Hoskinson

However, Hoskinson remains optimistic about the future, despite these concerns. He believes that this event is an opportunity for the crypto world to set aside its differences and its fragmented nature, and unite for a common cause. That cause, of course, being a sensible set of rules and guidelines, that would prevent the US from becoming a dystopia.

Overall, he believes that the future of crypto will be fine. However, his comments have revealed a growing sentiment that many in the crypto world share. A lot of the industry’s participants see the current regulatory environment as a challenge, but also as an opportunity for development and growth. There are still risks and uncertainties associated with digital assets, but there is also the potential benefit in decentralized finance, innovations, and self-sovereign identity. In this case, the benefits outweigh the risk.

As for Binance and its case with the SEC, the exchange expressed its disappointment with the regulator’s move and refused to settle. Instead, it plans to fight for the opportunity to prove its innocence, and the same is true for its CEO, Changpeng Zhao (CZ). The company raised its own concerns regarding the SEC’s behavior and approach to regulating crypto, or rather, the lack of any serious efforts to do so. It also accused the SEC that its actions are not motivated by what is best for the citizens of the US, but rather by the desire to claim jurisdictional ground from other regulators.