Charles Hoskinson, the founder of Cardano (ADA), participated in a discussion on cryptocurrency regulation held at the US Congress. Other industry players, as well as government institutions, also attended.
Hoskinson on US Congress Crypto Regulation Debate. In summary, Hoskinson was pleased with the way the industry is regulated. However, he emphasized that such measures must focus. Regulation can be linked to consumer protection, penalties or market stability and can have different approaches.
Using chickens as a comparison to cryptocurrencies, Charles Hoskinson argues that there is no point in regulating something truly decentralized and that lawmakers should consider this, suggesting that they focus on ethical values rather than labels.
Cryptocurrencies are the most transparent asset
Beginning his speech, Charles Hoskinson, founder of Cardano (ADA), summarizes the history of cryptocurrencies in a few minutes. Finally, he points out that it is necessary to have the humility to admit that innovation creates specific difficulties if we want to talk about regulation.
“Instead, we need to focus on principles […] Cryptocurrencies are financial stem cells at their core. They can be virtually any asset and change over time. The principles don’t change.”
Hoskinson comments that it is somewhat ironic that they are talking about regulating cryptocurrencies. After all, they are the market’s most transparent assets. For example, he mentions that all Bitcoin transactions have been recorded since 2009, and knowing which coins belong to Satoshi Nakamoto is possible.
As for labels, whether a particular cryptocurrency is a security or a commodity, Hoskinson points out that this should not be the focus. Focusing on where we want protection, such as strikes, would be wiser for the Cardano founder.
“Commodities are inherently decentralized. I grow hay on my farm and don’t have to ask permission. We’re not the Soviet Union. We don’t regulate things that way. So when I sell them, they go to the global market, and that market has rules, principles, and protections,” argues Hoskinson.
Therefore, the Cardano founder argues that regulating truly decentralized cryptocurrencies wastes time. Instead, the government should focus on market manipulations, cartels, and other activities that are harmful to society.
“So, if cryptocurrencies are truly decentralized, it makes sense to incorporate them into a regulatory framework designed for things like that.”
The full video on the US Congress debate on cryptocurrency regulation is available below.