In a livestream on November 25, Charles Hoskinson, the founder of Cardano and CEO of Input Output Global (IOG), voiced serious concerns over the Wyoming stablecoin project, highlighting what he perceives as procedural misconduct and unfair exclusion of the Cardano blockchain.
Cardano Founder Speaks Out
Hoskinson began by recounting the initial optimism surrounding the Wyoming legislature’s passage of a crypto law nearly two years ago, which aimed to enable the state to issue its own asset-backed stablecoin. “Almost immediately after this proof of concept bill was pushed forward, many people in the Wyoming government and outside of the government reached out to Input Output to ask for our advice and suggestion of how we wanted to work with the government,” he stated.
Over the past year and a half, IOG participated extensively in the project’s developmental phase. “We decided to serve on the subcommittee and provided a great degree of advice over almost a year and a half in many, many meetings about things that would need to be done for such a project to be successful,” Hoskinson revealed. The discussions covered essential aspects such as issuance and redemption processes, compliance, technological standards, and strategies to compete with established stablecoins like Circle and Tether.
However, Hoskinson expressed dismay over the appointment of an executive director who, according to him, favored the Ethereum ecosystem contrary to the bill’s intent. “By statute, this executive director came from the Ethereum ecosystem with, I guess, some background in Polygon, and from the very beginning made statements that the coin should be issued first in the Ethereum ecosystem, which was directly against the intent of the authors of the bill who wanted the Wyoming-based stablecoin to be multi-chain,” he alleged.
He criticized the commission’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 assertions 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 appeals, rebuttal,” he emphasized.
Hoskinson did not mince words regarding the legality of the commission’s actions. “I think it’s both illegal and unconstitutional against 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 “the government of Wyoming has gotten in the business of picking winners and losers.”
Highlighting the broader impact, Hoskinson pointed out that numerous other blockchain platforms were similarly excluded. “It’s not just Cardano that was excluded; 29,900-plus blockchains were also excluded in this pre-qualification process,” he remarked. 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 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 potential legal action. “Moving forward, there are many options, and we at IOG will pursue them—options at our discretion,” he declared. He mentioned that several Wyoming lawmakers are “deeply disgruntled and disturbed by this behavior,” and are questioning whether the project should be repealed or defunded.
Despite his frustrations, Hoskinson reaffirmed his commitment to Wyoming and its potential as a hub for blockchain innovation. “I do believe that Wyoming is still a great place to form a cryptocurrency business, and I do believe that there are many people who are very well-intended,” he said. He stressed the importance of fair treatment, especially given IOG’s significant investments in the state. “I’d like to believe that those investments were wise and that we will be treated fairly and rule of law prevails,” Hoskinson stated.
He also cautioned that Wyoming risks losing its competitive edge if such practices continue. “If Wyoming wants to hold on to the crypto businesses that have incorporated there, they have to make sure that there’s a perception it still is the best place, including a strong adherence to the rule of law and a government that doesn’t pick winners and losers,” the Cardano founder warned.
Concluding his remarks, Hoskinson expressed hope for a resolution but remained firm on pursuing justice. “We’ll get it sorted out and solved because this is just the beginning; by no means is it the end,” he asserted. “Remember, I live there. I’m not going anywhere.”
At press time, ADA traded at $1.04.
Featured image from YouTube, chart from TradingView.com