Cardano founder Charles Hoskinson alleges unfair bias and industry collusion, Crypto News Flash reports.
The recent selection process for Wyoming’s state-backed stablecoin, known as the Wyoming Stable Token (WST), has stirred controversy within the cryptocurrency industry. Charles Hoskinson, founder of Cardano, claims that the process unfairly sidelined major blockchain platforms like Ripple’s XRP Ledger (XRPL) and Cardano, favoring Ethereum-centric solutions instead.
In a series of pointed social media posts, Hoskinson called XRP a “huge loser” in the process, arguing that the decision cost Ripple a significant opportunity to increase the liquidity of its RLUSD stablecoin and showcase its technological capabilities.
Wyoming’s WST project is aimed at creating a state-backed, dollar-pegged stablecoin. Stablecoins are digital tokens whose value is tied to fiat currency, offering a bridge between traditional finance and blockchain-based transactions. The selection process for which blockchain platforms would support this initiative has become a flashpoint for industry debate.
According to reports, blockchains that made the cut included Solana, Avalanche, Sui, Stellar, and Ethereum Layer 2 chains like Optimism and Base. However, Ripple’s XRP Ledger (XRPL) — whose RLUSD stablecoin had recently been approved by the New York State Department of Financial Services (NYDFS), one of the most stringent regulatory bodies in the US — was notably excluded.
This decision did not sit well with Hoskinson, who argued that if New York’s regulatory approval was sufficient for RLUSD, there was no reason for Wyoming to exclude it. He suggested that Wyoming could have issued millions of dollars of WST tokens on RLUSD infrastructure, which, in his view, would have significantly boosted XRP liquidity across major exchanges.
One of the more explosive claims from Hoskinson is that industry heavyweights Consensys, Circle, and BlackRock played a role in shaping Wyoming’s decision. He implied that these players sought to steer the WST project toward Ethereum-friendly solutions, rather than giving Ripple’s XRP Ledger a fair chance.
“Consensys, Circle, and BlackRock made sure that didn’t happen,” Hoskinson claimed.
He alleged that the decision to exclude RLUSD was an act of gatekeeping. He criticized the project’s selection criteria, noting the inclusion of Stellar, which he argued has a smaller market cap and trading volume than XRP. Stellar’s market cap is $13 billion with $1 billion in daily trading volume, while XRP has a market cap of $140 billion and “tens of billions in volume” daily, according to Hoskinson.
“So let me get this straight,” he said. “Apparently, Stellar can do stuff that Ripple can’t do according to the scoring criteria.”
This comment fueled further debate on social media, with some crypto enthusiasts echoing Hoskinson’s concerns.
“Wyoming’s exclusion of RLUSD is a clear example of bias. If New York, with its strict regulations, approved RLUSD, there’s no reason Wyoming couldn’t have considered it,” one user noted.
Ripple’s RLUSD stablecoin system, approved in New York, was touted as an opportunity for Wyoming to boost its blockchain profile while enhancing XRP’s liquidity. By issuing WST tokens on RLUSD infrastructure, Wyoming could have positioned itself as a leader in blockchain integration, according to Hoskinson.
Ripple’s RLUSD had already gained approval from one of the toughest regulatory agencies in the country, and critics argued that this should have bolstered its chances. However, Wyoming’s decision-makers reportedly did not see it that way.
According to Hoskinson, the selection committee’s actions reflected a deeper issue of fairness and transparency in the blockchain industry. He argued that the exclusion of Ripple and Cardano was part of a broader pattern of industry gatekeeping — a process where larger, more influential entities limit the participation of smaller but viable competitors.
The fallout from Wyoming’s decision has triggered widespread debate in the crypto community. For many, the incident highlights concerns about transparency and fairness in the selection processes for large-scale blockchain projects.
The debate extends beyond Wyoming. As the crypto sector matures, so do questions about the influence of large financial players like BlackRock and Circle, whose interests are often aligned with more established blockchain ecosystems. Circle’s USDC stablecoin is among the most widely used in the industry, and its preference over alternative options like RLUSD has raised suspicions of behind-the-scenes influence.
The debate also shines a light on broader trends in the crypto industry, where decentralization — one of the core tenets of blockchain — sometimes appears to clash with the realities of industry power structures. Critics argue that larger entities like BlackRock, Circle, and Consensys wield significant sway over how key projects are developed and supported.
For Charles Hoskinson, the fight is far from over. His public criticism of Wyoming’s WST process may spark broader industry discussions about how blockchain projects are selected for state-backed initiatives. The controversy also raises questions about how “fair competition” is defined in an industry that prides itself on decentralization and open access.
Ripple, for its part, continues to press forward with RLUSD, having gained the confidence of New York regulators. The company may seek other opportunities to position RLUSD as a key player in the growing world of stablecoins. Meanwhile, Hoskinson’s Cardano blockchain remains on the outside looking in, as other platforms like Solana and Avalanche receive the lion’s share of major blockchain project deals.
