The Cardano founder, Charles Hoskinson, happens to be one of the significant proponents of cryptocurrency adoption, especially in the United States. Earlier this month, Charles visited Washington D.C. to convince regulators to create agreeable policies for the inconsistent market.
Furthermore, the issue of regulation has been a debatable topic by the Securities and Exchange Commission (SEC) and the crypto community. Unfortunately, the regulatory body is yet to provide clear and consistent guidelines for the unpredictable crypto market.
Charles Hoskinson took the chance to address the United States House Subcommittee on Commodity Exchanges, Energy, and Credit. With his testimony at the hearing, he asked for more precise regulation of the crypto space while educating them on how cryptocurrencies and the blockchain operates. Hoskinson also highlighted some of the potentials of the blockchain and how Cardano is using the technology to proffer real-world solutions.
“I am pleased to provide you with as much information as you need to ensure a fully informed and robust conversation on the future of digital asset regulation,” Hoskinson said.
He also added that regulating all cryptos by an entity or a person is impossible.
“Regulation can become algorithmic, and what is good about Crypto is that its transactions carry metadata and identity on the transactions themselves. So we can have Some form of self-certification by Self-Regulatory Organization (SRO) and no government involvement until the algorithm detects an anomaly.
So the self-certification method can be monitored by The Commodity Futures Trading Commission or SEC as they monitor other financial sectors.”
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Cardano CEO Provides Suggestions on Crypto Regulations
Hoskinson echoed his beliefs that regulating crypto assets would be a challenge due to the large number of projects currently existing, which is more than 20,000. And yet, more crypto projects are on the rise. Nevertheless, he suggested that U.S. regulators focus on tools to make crypto regulation easier.
The Cardano boss stated that policymakers could choose to sit back while saying the things they care about regarding regulating the industry. However, these things will be integrated into a system like establishing a Self-Regulatory Organization (SRO).
He added that the existing government agencies tasked with overseeing the cryptocurrency industry should only get involved with crypto regulation when an anomaly is detected by the algorithm incorporated into the system.
Hoskinson Proposes a Private-Public Partnership
Charles Hoskinson urged the United States regulators to create a public-private partnership in the cryptocurrency sector, just as it did during the early days of the internet.
The Cardano Founder said:
“The United States embraced the public-private partnership that allowed the internet to flourish and for the United States to play and maintain a primary role in internet technology. Similarly, it will take many different agencies working together with the private sector to ensure the American blockchain industry flourishes and reaches its full potential.”
Read More: Cryptocurrency Regulations: Cardano Founder Engages Washington D.C. Policy Makers
