Cardano founder offered the US authorities way of crypto regulation

Charles Hoskinson believes that there should not be one oversight body in the country, but many “interconnected and interdependent agencies and private companies”

25.06.2022 - 09:40

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What’s new? The founder of the Cardano blockchain Charles Hoskinson spoke at a US congressional hearing where he proposed an approach to cryptocurrency regulation. In his view, oversight should take place in a public-private format, where there is not just one regulator in the country, but many “interconnected and interdependent agencies and private companies.” Hoskinson also added that some of the regulatory work can be shifted to dedicated software. He believes that digital assets cannot be clearly labeled as commodities or securities because of their diversity, including in terms of the ways of use.

Hoskinson’s speech at a Congressional hearing

What else did Hoskinson say? In his view, congressmen need to consider the aspect that existing financial regulatory regimes in the United States did not provide for the emergence of digital assets. He added:

“Myself and many others in the industry are in favor of and support appropriate and responsible regulation of digital assets and blockchain technology. However, this is a new technology and a radically new asset class that can not readily fit within the confines of the laws and tests created almost a century ago.”

In June, US Securities and Exchange Commission (SEC) Chair Gary Gensler invited other financial agencies to join forces to develop comprehensive rules for regulating the cryptocurrency sphere. The SEC plans to share information on registered tokens and other digital assets with “allied” regulators.

In their bill, Senators Cynthia Lummis and Kirsten Gillibrand proposed appointing the Commodity Futures Trading Commission (CFTC) as the regulator of the crypto market. In this, the SEC chief earlier said that most crypto assets fit the definition of securities and should therefore be regulated by his agency.

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