REGULATIONS NEED TO BE BETTER DEFINE FOR CRYPTO: HOSKINSON
Cardano founder Charles Hoskinson told Congress he should make crypto regulations but leave compliance with software developers.
Hoskinson likened the ideal crypto regulation system to the way bank governance operates during the June 23 congressional hearing, telling lawmakers that "neither the SEC nor the CFTC comes out of the KYC-AML, banks."
“It is a public-private partnership. What needs to be done is to establish those boundaries, then what we can do as creators to write software to help make that happen. ”
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are two major financial regulators in the crypto industry.
Republican representative Austin Scott of Georgia has stated that the SEC or CFTC has no control over thousands of cryptocurrencies in the market, saying "it is impossible to control all these currencies."
Hoskinson responded that the ability of cryptocurrencies to store and transmit data means that they can do a lot of automatic control function. He also used it as a reason to allow the crypto industry to create self-regulatory organizations (SROs) to regulate regulatory compliance, as did the private banking industry.
Hoskinson suggested that the industry create a “certification system” that would automatically monitor compliance until the irregularities were met, when the financial officer would review it.
Continuing to point out why employees should not worry about crypto regulation, Hoskinson thought that even four times the size of the Internal Revenue Service (IRS) would not be enough to test every American.
Instead, Hoskinson told Scott's attorney that cryptocurrencies could be set up to prevent transaction payments until official checks were made.
Hoskinson's June 23 testimony published on the IOHK website showed that he was willing to work with the organization's directors to develop new laws, which he said were in line with U.S. laws and regulations. "It has to be a guiding force in the blockchain industry."
"However, this is a new technology and a very new asset class that can easily fit into the rules and regulations created almost a century ago."
Hoskinson's call for clear boundaries in the crypto regulatory environment is similar to what some insiders in the U.S. industry are doing. last December. SEC Commissioner Hester Peirce recently blamed in part on the SEC's lack of regulatory clearance and rejected the position of Bitcoin exchange-traded funds (ETF) since its inception in the US.