Hoskinson outlined the regulatory framework he envisioned for the sector.
According to Hoskinson, no other financial asset is as open and accessible as crypto.
Cardano’s Charles Hoskinson has made it to the U.S. Congress through crypto. The crypto-verse was abuzz recently with news that Cardano developer Charles Hoskinson has been called before the U.S. Congress. The representation of cryptocurrency before the U.S. government thrilled the crypto community. Regulations grabbed center stage among the various topics Hoskinson touched on in his testimony.
The subject of cryptocurrency regulations has always been a contentious one. However, despite a number of governments issuing policies that are crypto-friendly, others have stifled development instead. As a result, Hoskinson outlined the regulatory framework he envisioned for the sector during his time in the U.S. Congress.
Public-Private Relationship
Cardano’s creator recommended refinement of crypto laws. However, he wanted the software developers to be responsible for ensuring compliance rather than the government.
In regards to compliance, Hoskinson said:
“It’s not the SEC or the CFTC going out there doing KYC-AML, it’s banks. It’s a public-private partnership. What needs to be done is to establish those boundaries, then what we can do as innovators is write software to help make that happen.”
Regulators have made many attempts to classify cryptocurrency. Commodities, on the other hand, have been referred to as securities by some. In addition, there are dozens of cryptocurrencies on the market that all have a different use. As Hoskinson points out, regulators need to sit back and evaluate what public policy goals they’re trying to achieve. For example, sanctions compliance, consumer protection, and market stability might all fall under this umbrella.
He also revealed how transparent the sector is. According to Hoskinson, no other financial asset is as open and accessible as a cryptocurrency. Citing an example of Bitcoin, he pointed out that every transaction from 2009 to the present has been recorded.