A Ripple community member publicly accused Cardano founder Charles Hoskinson of being involved in ETHgate — the long-running allegation that the U.S. Securities and Exchange Commission favored Ethereum over XRP — only to retract the claim days later, calling it hearsay. The episode unfolded against a backdrop of fresh regulatory action: the CLARITY Act, a bill that would classify tokens like XRP and Cardano as commodities, cleared the Senate Banking Committee and now heads to the full Senate.
The ETHgate accusation and retraction
Wino, a member of the Ripple community, alleged that Hoskinson coordinated with Ethereum to hurt XRP's growth. The accusation taps into a narrative that has simmered for years: that the SEC declared Ethereum not a security in 2018 while later suing Ripple over XRP, giving Ethereum what some see as a regulatory edge.
Hoskinson pushed back quickly. He said he was pushed out of Ethereum in June 2014 and questioned how he could have later conspired with the project to attack XRP. His defense was blunt: the timeline didn't add up.
Wino eventually walked it back. He said the accusation was based on hearsay and that he hopes the full truth comes out someday. No evidence was provided at any point.
Hoskinson warns CLARITY Act isn't a cure-all
Hoskinson was also outspoken on the CLARITY Act, which the Senate Banking Committee voted to advance this month. He warned the bill is far from perfect and could give the SEC grounds to classify new crypto projects as securities — the opposite of what many in the industry want.
Pro-XRP lawyer John Deaton countered that failing to pass the bill risks a 'Gensler 2.0' scenario — a reference to the former SEC chair who took an aggressive enforcement stance. For Deaton, imperfect legislation is better than a regulatory vacuum.
Garlinghouse: XRP will be fine either way
Ripple CEO Brad Garlinghouse took a cooler view. He said XRP will be fine regardless of the CLARITY Act, pointing to Judge Analisa Torres' 2023 ruling that XRP itself is not a security. That ruling gave Ripple a legal foothold that Garlinghouse believes will hold regardless of what Congress does.
The tension between XRP and Ethereum is nothing new. The two were once the largest altcoins by market cap and have been direct competitors for years. The CLARITY Act would treat both as commodities under the law, leveling the playing field — at least for existing tokens.
The full Senate is expected to take up the CLARITY Act in the coming weeks. Whether the bill's language gets tightened or loosened before a vote is anyone's guess. Hoskinson, Deaton, and Garlinghouse will be watching.
