Charles Hoskinson, founder of Cardano (ADA), took part in a debate on cryptocurrency regulation this Thursday (23). The talk, held at the US Congress, was also attended by other industry players and government agencies.
In short, Hoskinson was pleased with the way the industry is regulated. However, he stressed that such measures should be targeted, pointing out that regulation can be linked to consumer protection, sanctions or market stability, and can take different approaches.
Using chickens as a comparison to cryptocurrencies, Hoskinson argues that there is no point in regulating something that is truly decentralized, and that lawmakers should take this into account, suggesting that they focus on ethical values rather than labels.
There is no other financial asset as transparent as cryptocurrencies.
Charles Hoskinson, founder of Cardano (ADA), begins his speech, summarizing the history of cryptocurrencies in a few minutes. Finally, he points out that to talk about regulation, you have to have the humility to admit that innovation creates specific problems.
“Instead, we should focus on principles […] Cryptocurrencies are financial stem cells at their core, they can be virtually any asset and can change over time, the principles don’t change.”
Hoskinson then notes that it is somewhat ironic that they are talking about regulating cryptocurrencies, after all they are the most transparent assets on the market. As an example, he mentions that since 2009 all Bitcoin transactions are registered and it is even possible to know which coins belong to Satoshi Nakamoto.
As for labels, whether a particular cryptocurrency is a security or a commodity, Hoskinson points out that shouldn’t be the focus. For the founder of Cardano, it would be smarter to focus on points where we want protection, such as blows for example.
“Commodities are decentralized by nature. I raise chickens on my farm, and I don’t have to ask permission, we’re not the Soviet Union, we don’t arrange things that way.” says Hoskinson. “So when I sell them, it goes to the global market, and that market has rules, principles and protections.”
“So if cryptocurrencies are really decentralized, it makes sense to include that in a regulatory framework designed for that sort of thing.”
That’s why Cardano’s founder argues that regulating truly decentralized cryptocurrencies is a waste of time. Instead, the government should target market manipulations, cartels and other activities that are harmful to society.
The full video of the US Congress debating cryptocurrency regulation is available below.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
