Cardano founder gives his take on the future of criptocurrency regulation

At the U.S. Congressional Committee hearing on June 23, Charles Hoskinson, founder of Cardano, gave his take on the future of criptocurrency regulation.

The purpose of the hearing was to discuss the effectiveness of current regulations with the view of implementing a future framework.

A lack of regulatory clarity is a sore point for the industry. In recent times, we have seen this play out in a number of examples of heavy-handed enforcement action taken by U.S. regulators.

Hoskinson, representing the industry, put forward the position of developers, explaining how a public-private partnership would be in the best interest of all concerned.

The Senate's Agriculture Committee, Subcommittee on Commodity Exchanges, Energy and Credit Hearing focused on closing the gap in regulatory oversight of the digital asset market.

Hoskinson made a point about innovation that makes it hard for regulators to make a case as an expert.

Regulation should focus on principles rather than formulating rules for individual events. As examples of principles, the founders of Cardano gave deciding on which risks to protect against, what rights users should have, and how to use tools for the greatest possible good.

The issue of regulating cryptocurrencies as commodities or securities is more complex than solving a binary argument, according to Hoskinson.

To that end, a binary argument is a holistic approach that takes into account public policy considerations based on what regulators want to achieve, such as sanctions compliance, consumer protection, and or market stability.

I don't think it would be wise to say that it is a security, a commodity? Or fall into this temptation of who is the more permissive regulator, or what is regulatory arbitrage? What things do we want to guard against? Social media feedback on Hoskinson's performance at the hearing was overwhelmingly positive.

One Twitter comment said that the founder of Cardano enlightened the Committee with pure class. Another congratulated him on a great job in representing the whole of the criptocurrency industry. The case has been stated. It now falls on the Committee to take this forward for a more equitable and holistic approach to the regulation of criptocurrencies.