Cardano founder says the US needs to move to a functional regulation system

Charles Hoskinson shared his stance on the current regulatory system of the United States and suggested a functional regulation system. 

Recently Cardano project founder- Charles Hoskinson- appeared in an interview session Thinking Crypto. Charles said that the current approach of the watchdogs to regulate the crypto will not work. 

According to Charles, the world needed a working and functional regulatory approach and further added 

“The US needs to move to a functional regulation system instead of a definitional system. We’ve moved beyond the world that something’s a commodity and something’s the currency and something’s a security.

Charles Hoskinson suggested that the regulatory approach should be in the type of use cases i.e the type of the rules should depend upon the assets use cases, to bring better regulation. But here, we are getting regulatory authorities based on the asset type, for instance, CFTC is responsible for the regulation of commodities and derivatives. While Sec agency handling securities. 

Further, Charles said that we need a type of regulation system which has a better definition over the crypto industry. And we have a working model that can be applied to all things. 

“We don’t have a definition of what is a utility token, versus a security token, these types of things. We need a better functional model and we need a better asset definitional model and they need to be applied together.”

Charles suggested a need for a new enforcement approach to regulating the crypto industry and claimed that traditional private financial surveillance will not work moreover the crypto industry. 

Charles pointed out the essential roles of the middle agents which are reporting about the activities going on in the crypto ( negative, maybe positive). According to Charles, Any of the regulatory bodies or agencies is not doing all these works, only third parties are informing & reporting. 

Charles also believes that, if we will remove the intermediary financial system then that will end up in a blind situation for the agencies, which are handling the regulation. 

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