Cardano’s Charles Hoskinson Mocks SEC in Coinbase Fight: “Gary Can Come In”

The fight between Coinbase and the U.S. Securities and Exchange Commission (SEC) has taken another sharp turn and Cardano founder Charles Hoskinson just added fuel to the fire with a sarcastic jab at former SEC Chair Gary Gensler.

Here’s what’s buzzing on X.

Coinbase Calls Out SEC Over Destroyed Records

Coinbase’s Chief Legal Officer Paul Grewal revealed this week that the SEC, under Gensler, destroyed internal texts from October 2022 to September 2023. These messages, he said, were directly related to ongoing legal battles and should have been preserved.

“The Gensler SEC destroyed documents they were required to preserve and produce. We now have proof from the SEC’s own Inspector General,” Grewal wrote on X.

He called it a “gross violation of public trust” and confirmed Coinbase is asking the court for expedited discovery, sanctions, and the immediate release of any remaining communications.

For Coinbase, the accusation highlights a double standard: the same regulator that fines crypto companies billions for poor record-keeping is now accused of breaking its own rules.

Hoskinson Turns Gensler’s Line Back on Him

Hoskinson wasted no time in pointing out the irony. Responding to Grewal’s post, he wrote: “I’m sure Gary can come in and register :)”

The comment cuts at one of Gensler’s most famous talking points. During his time at the SEC, he repeatedly told crypto firms to “just come in and register.” Industry leaders argued that no clear path for registration existed.

Hoskinson’s one-liner flips that message back on the regulator itself – highlighting what many see as hypocrisy.

Coinbase’s Lengthy Legal Battles

The regulator has previously charged the exchange with operating as an unregistered securities exchange, broker, and clearing agency. It also accused Coinbase of running an unregistered staking-as-a-service program, which has been a major revenue source for the company.

According to the SEC, Coinbase has made billions since 2019 by combining exchange, broker, and clearing functions without registering any of them. The agency argues this deprived investors of critical protections such as proper disclosures, inspections, and safeguards against conflicts of interest.

It goes beyond this too.

In July, it challenged the Federal Deposit Insurance Corporation (FDIC) for allegedly trying to push crypto firms out of banking. In Oregon, it is contesting the state’s attempt to enforce its own crypto rules, arguing that only federal regulators have that authority.

Coinbase says these cases are about forcing real regulatory clarity for the crypto industry.

A New Dawn for Crypto

But things have shifted dramatically under President Trump’s second term. With Chairman Paul Atkins now leading the SEC, the agency has launched Project Crypto – an initiative to draft clear, simple rules and bring digital asset activity back onshore.

Atkins has made it clear that most crypto assets should not be treated as securities, and even where they are, the rules will be rewritten to encourage innovation, not punish it.

Backed by the America First Policy Institute and embraced by industry leaders, the new SEC has signaled a complete break from Gensler’s crackdown era – positioning the U.S. to become the global capital of crypto.