AT Congressional Committee Hearings On June 23, Cardano founder Charles Hoskinson expressed his opinion on the future of cryptocurrency regulation.
The purpose of the hearing was to discuss the effectiveness of the existing rules with a view to implementing a future framework.
The lack of clarity in regulation is a sore point for the industry. Recently, this has been manifested in numerous examples of heavy-handed enforcement actions by US regulators.
However, while representing the industry, Hoskinson put forward the developers’ position, explaining that public-private partnerships are in the interests of all stakeholders.
Cryptocurrencies – a security or a commodity?
Hearings by the U.S. House of Representatives Committee on Agriculture, Subcommittee on Commodity Exchanges, Energy, and Credit focused on addressing gaps in regulatory oversight of the digital asset market.
As an expert witness Hoskinson noted that “innovation complicates the specifics” in relation to regulation.
Therefore, regulation should focus on principles rather than formulating specific rules for individual events. The Cardano founder cited decisions about what risks to guard against, what rights users should have, and how to use tools for the “greatest possible good” as examples of principles.
With regard to the regulation of cryptocurrencies as goods or securities, Hoskinson said the problem is more complex than the binary argument solution.
“When you look at cryptocurrencies in general, I have always viewed them as financial stem cells. They are more fundamental than a certain category, such as a currency or a commodity.”
As such, the benefit of the binary argument is a holistic approach that takes into account public policy considerations based on what regulators want to achieve, such as sanctions compliance, consumer protection, and/or market stability.
“So I don’t think it’s reasonable to say whether it’s a security or a commodity? Or give in to the temptation of who is the more lenient regulator, or what is regulatory arbitrage? Better just take a step back and tell us what we want to protect against?
The founder of Cardano outshines everyone
Social media reviews of Hoskinson’s hearing performance were overwhelmingly positive.
Charles did a great job! He had to make himself known in conversation but made the most of the moments he could get. He represented #CardanoIOG and space in general are very good.
— Genius Yield official (@GeniusyieldO) June 23, 2022
The case has been announced. It is now up to the Committee to move this forward for a more fair and holistic approach to regulating cryptocurrencies.
Credit : cryptoslate.com