XRP, ADA Omitted From Wyoming Stablecoin Project Amid Legal Tensions

• Cardano’s Charles Hoskinson hinted at a class action against the Wyoming Stable Token Commission over alleged selection bias.
• Hoskinson criticized the Commission for excluding XRP and ADA while favoring Stellar, citing market cap and trading volume disparities.
• Allegations of bias involve the Commission’s Executive Director, linked to ConsenSys and Polygon, raising questions about impartiality.

Cardano founder Charles Hoskinson has voiced concerns about the Wyoming Stable Token Commission’s decision-making process. He hinted at potential legal action by blockchain firms excluded from the project, citing a lack of transparency. Hoskinson’s statements came after receiving an email from the Commission listing approved protocols. Notable blockchains such as Stellar made the cut, while other prominent contenders, including Cardano, were left out.

XRP and Wyoming https://t.co/uztrsGNtxT

— Charles Hoskinson (@IOHK_Charles) November 25, 2024

Questions Raised Over Selection Criteria

Intriguingly, Hoskinson questioned the Commission’s criteria, particularly the inclusion of Stellar over XRP. He highlighted XRP’s market dominance, with an $82 billion market cap and $11 billion daily trading volume, compared to Stellar’s $14.7 billion market cap and $3.8 billion daily trading volume. This discrepancy, he suggested, calls for a review of the selection standards.

Similarly, the Cardano founder expressed surprise at the exclusion of several other established blockchains, including Algorand, Tezos, and Aptos. He noted that none of the rejected protocols were allowed to present their Proof-of-Concept, which could have clarified their technical capabilities. This lack of opportunity for participation has amplified concerns among excluded firms.

Allegations of Bias Surface

In his recent video, Hoskinson pointed to a potential conflict of interest involving the Commission’s Executive Director. The director has ties to ConsenSys and the Polygon ecosystem, raising questions about impartiality in the selection process. Hoskinson suggested that ConsenSys’ strained relationship with Ripple, the parent company of XRP, might have influenced the decisions.

Moreover, these allegations, combined with the absence of a fair evaluation framework, have led to calls for greater accountability. The timing of the announcement coincided with a broader downturn in the cryptocurrency market, with XRP and Cardano’s ADA seeing declines of 12% and 15%, respectively. While no direct link has been established, the Commission’s actions have added to existing market uncertainties.

Blockchain Firms May Seek Legal Recourse

Therefore, the possibility of a class-action lawsuit by the excluded firms remains under consideration. Hoskinson’s comments indicate a growing frustration within the blockchain community over the Commission’s approach. Calls for transparent procedures and impartial evaluations are growing louder, as stakeholders demand clarity on the criteria used.

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