At a US Congressional Committee Hearing On June 23, Cardano founder Charles Hoskinson commented on the future of crypto regulation.
The purpose of the hearing was to discuss the effectiveness of the current rules in view of the implementation of a future framework.
A lack of regulatory clarity is a sore point for the industry. This has recently been demonstrated by numerous examples of persistent enforcement action by US regulators.
However, as an industry representative, Hoskinson took the position of developers, stating that a public-private partnership would be in the best interests of all involved.
Are cryptocurrencies a security or a commodity?
That The hearing of the US House of Representatives Committee on Agriculture, Subcommittee on Commodities, Energy and Credit focused on filling the gap in regulatory oversight of the digital asset market.
Hoskinson, in his capacity as an expert, pointed out that “innovation complicates details in terms of regulation”.
Therefore, regulation should focus on principles rather than formulating specific rules for individual events. As examples of principles, the Cardano founder cited deciding what risks to protect against, what rights users should have, and how to use tools for “maximum benefit.”
Regarding the regulation of cryptocurrencies as commodities or securities, Hoskinson said the problem is more complex than solving a binary argument.
“If you look at cryptocurrencies in general, I’ve always viewed them as financial stem cells. They are more fundamental than a specific category, like a currency or a commodity.”
What trumps a binary argument for this purpose is a holistic approach that takes into account public policy considerations based on what regulators want to achieve, such as: B. Compliance with sanctions, consumer protection and/or market stability.
“So I don’t think it would be wise to say, is it a security, a commodity? Or do you succumb to temptation as to who is the more permissive regulator or what is regulatory arbitrage? Better take a step back and say: What things do we want to guard against?”
Cardano founder steals the show
Social media feedback on Hoskinson’s appearance at the hearing was overwhelmingly positive.
Charles did a great job! He had to assert himself in conversation but made the best of the moments he could get. He represented #CardanoIOG and the space overall really good.
— Official of Genius Yield (@GeniusyieldO) June 23, 2022
The case is known. It is now up to the committee to push this forward for a fairer and more holistic approach to crypto regulation.