Cardano Foundation’s Response to IOSCO’s Policy Recommendations
In May 2023, the International Organization of Securities Commissions (IOSCO) released a consultation report suggesting 18 policy recommendations for the crypto and digital asset markets. The Cardano Foundation, a prominent player in the crypto space, shared its perspective on these recommendations. Here are the key points from their response:
- The Cardano Foundation emphasizes the need for a clear distinction between blockchain infrastructure and its applications.
- They propose a function-focused categorization to recognize and regulate the unique attributes and potential of different blockchain applications.
- Functional and outcome-driven regulations are necessary in the rapidly evolving blockchain and crypto sectors.
- They advocate for a flexible, risk-based regulatory framework that adapts to industry changes while addressing potential risks proportionately.
- The Cardano Foundation believes that blockchain technology extends beyond financial use cases and regulations should recognize its potential in various sectors.
The Cardano Foundation concludes by stressing the importance of regulations that support innovation and minimize risks and societal costs. They believe that the right regulatory environment can unleash the transformative potential of the crypto and blockchain sectors.
Hot Take: The Cardano Foundation’s response highlights the need for nuanced and adaptable regulations that recognize the unique attributes and potential of blockchain applications. They argue for a broader view of blockchain technology beyond financial risks and emphasize the importance of regulations that foster innovation while minimizing potential risks and costs.
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