charles hoskinson, founder of Cardano (ADA), participated in a debate on the regulation of cryptocurrencies this Thursday (23). Held in the United States Congress, the conversation was also attended by other industry players, as well as government institutions.
In short, Hoskinson was pleased with the way the industry is regulated. However, he emphasized that such measures must have a focus, noting that regulation may be linked to consumer protection, sanctions or market stability, and may have different focuses.
Using chickens as a comparison to cryptocurrencies, Hoskinson argues that there is no point in regulating something that is truly decentralized and that policymakers 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
Beginning his speech, Charles Hoskinson, founder of Cardan (ADA), summarizes the history of cryptocurrencies in a few minutes. Finally, he points out that to talk about regulation it is necessary to have the humility to admit that innovation creates specific difficulties.
“Instead, we should focus on the principles […] Cryptocurrencies are financial stem cells at their core, they can be pretty much any asset and they can change over time, the principles don’t change.”
Hoskinson then comments that it is somewhat ironic that they are talking about the regulation of cryptocurrencies, after all they are the most transparent assets on the market. As an example, he mentions that all transactions of Bitcoin they are registered since 2009, 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 this should not be the focus. For the Cardano founder, it would be wiser to focus on the points where we want protection, like hits for example.
“Commodities are inherently decentralized. I grow hay on my farm and I 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,” Hoskinson argues.
“So if cryptocurrencies are truly decentralized, then it makes sense to bring them into a regulatory framework designed for things like that.”
Thus, the Cardano founder argues that regulating truly decentralized cryptocurrencies is a waste of time. Instead, the government should focus on market manipulations, cartels, and other activities that are harmful to society.
The full video of the US Congress debate on crypto regulation is available below.