Charles Hoskinson, the co-founder of Cardano ADA/USD, shared his thoughts on Monday on why U.S. regulators have been cracking down on cryptocurrencies.
What Happened: According to Hoskinson, regulators are taking decisive action following the collapse of Sam Bankman-Fried‘s FTX crypto exchange in November.
“The FTX collapse. The minute it happened, I knew the entire industry was in for a seriously hard time,” he tweeted.
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Why It Matters: Kraken, one of the leading cryptocurrency exchanges in the United States, agreed to shut down its staking service on Feb. 8 and pay $30 million in penalties to settle charges with the Securities and Exchange Commission (SEC).
In a series of tweets later that day, Coinbase COIN CEO Brian Armstrong warned against a potential ban on staking for U.S retail customers, stating that it “would be a terrible path for the U.S.”
The next crackdown came after Paxos Trust directed to cease minting a Binance-branded token BUSD that ranks as the third-largest stablecoin, with a market value of $16 billion.
Price Action: At the time of writing, ADA was trading at $0.40, up 1.68% in the last 24 hours, according to Benzinga Pro.
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