The United States’ Approach to Cryptocurrencies Could Harm the Industry, Says Cardano Founder
Cardano founder Charles Hoskinson has expressed concerns about the United States’ approach to cryptocurrencies, warning that it could have negative consequences and cause major players to leave the country. He criticized the perceived inconsistency in the application of decentralization standards by the U.S. Securities and Exchange Commission (SEC), highlighting that Cardano did not conduct an initial coin offering (ICO) and sold ADA vouchers in Japan without U.S. involvement.
Hoskinson also pointed out that Ethereum and Bitcoin were labeled as non-securities despite conducting ICOs without implementing mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. He criticized the lack of clarity and a well-formed policy in these matters.
Challenges with SEC Registration Process
In response to the recent SEC complaint against Kraken, Hoskinson raised concerns about the registration process with the SEC. He argued that it is difficult for issuers to operate decentralized systems and comply with KYC and AML regulations. Additionally, he questioned who would be responsible for registration if the issuer goes out of business but the protocol continues to operate.
Desire for Clear Policies and Collaboration
Hoskinson emphasized the need for clear and unambiguous policies from regulators. He called for an open-door policy between the crypto industry, regulators, and legislators to address issues and update laws to accommodate emerging technologies. While he anticipates continued litigation, Hoskinson remains optimistic that laws will eventually be passed to remove ambiguity and establish a regulatory regime through collaboration between the CFTC and SEC.
Hot Take: Changes Needed in US Crypto Regulation
The United States’ current approach to cryptocurrency regulation may have detrimental effects on the industry, warns Cardano founder Charles Hoskinson. He criticizes the inconsistency in applying decentralization standards and questions the labeling of Ethereum and Bitcoin as non-securities despite conducting ICOs without KYC and AML checks. Hoskinson also raises concerns about the SEC’s registration process and its applicability to decentralized systems. He calls for clear policies, open collaboration between stakeholders, and updates to laws to accommodate emerging technologies. Despite ongoing litigation, Hoskinson remains hopeful that laws will eventually be passed to establish a more transparent and effective regulatory regime.
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