Cardano founder Charles Hoskinson has openly criticized U.S. regulators, stating that the Securities and Exchange Commission (SEC) has already branded the crypto industry as criminal.

Hoskinson Blasts SEC’s Actions

Hoskinson pointed out that the SEC has sued both major crypto firms and smaller startups, accusing them of violating securities laws. As a result, the industry has suffered legal costs in the hundreds of millions of dollars, leading to billions in losses across the crypto market.

He accused federal regulators of hypocrisy, arguing that they are never held accountable for the damage caused by their actions, yet they portray themselves as victims when faced with criticism.

SEC Faces Industry Backlash

Hoskinson’s remarks come in response to recent complaints from SEC employees who claim that law firms are refusing to interview former SEC officials due to their role in regulatory crackdowns. Former SEC lawyer William McLucas called this retaliation unfair, arguing that employees were simply following orders.

However, Hoskinson disagrees:

“When someone asks you to do the wrong thing, you resign. You don’t blindly follow orders. Now, you’re being denied jobs because you lack moral integrity. The crypto industry will never forget or forgive this.”

He added that under the previous U.S. administration, regulators celebrated the collapse of crypto projects to advance their careers.

Crypto Industry Strikes Back

The crypto sector has started distancing itself from those linked to the SEC’s regulatory policies. In 2023, Coinbase (NASDAQ: COIN) CEO Brian Armstrong announced that the company would cut ties with law firms employing former SEC officials. This stance was later supported by crypto exchange Gemini.

What’s Next?

With growing distrust between the crypto industry and regulators, the battle over crypto regulations in the U.S. is far from over. Will the government ease its crackdown, or will the industry continue pushing back?