US lawmakers never tried to regulate something which poses different things at the same time: Hoskinson
Cardano founder talked about the necessity of the crypto regulation during his appearance at U.S. House Subcommittee on Commodity Exchanges, Energy and Credit.
Charles Hoskinson is the founder of Cardano blockchain and also a chief executive officer of IOHK, a developer team behind Cardano blockchain. He is one of the co-founders of the Ethereum blockchain but he left Ethereum a long time back because of the disagreement between with the initial aim of Ethereum co-founder Vitalik Buterin. Now he is aggressively working on the Cardano blockchain project to make blockchain technology useful at the commercial level.
On Thursday of this week, Charles Hoskinson appeared in the U.S. House Subcommittee on Commodity Exchanges, Energy and Credit, on special invitation by the agency. Through the interview, Hoskinson tried to explain the necessity of crypto regulation and the issue which is creating problems to create new laws for this innovative industry.
Hoskinson said that his IOHK and he are in favor of bringing an extended regulation framework to this Crypto industry but at the same time he said that different crypto assets are bearing different natures at different times, so it is not easy for the regulatory bodies to bring regulation.
“new asset class that can not readily fit within the confines of the laws and tests created almost a century ago.”
Cardano founder said that there are many types of crypto assets and these assets can be commodities or Securities and also there are chances that crypto may be a Security or Commodity or may not fall under any of these asset class categories. Further, Cardano’s founder suggested three points to keep in consideration to bring laws and regulations to the crypto industry.
Hoskinson explained:
“three things should be kept in mind: (i) the existing U.S. regulatory regimes never contemplated such an asset, (ii) without cryptocurrencies, most blockchain technologies simply will not function, and (iii) any regulatory goals should be to promote appropriate consumer protections and assure market integrity.”
According to Hoskinson, the third point can be achieved easily through the easy regulatory approach, where we should not label or tag the type of crypto asset.
Read also: India issued its 1% applicable TDS guideline for the crypto industry
