Cardano’s founder shared a groundbreaking vision on cryptocurrency and Blockchain regulation in a meeting with US lawmakers.
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- Cardano’s Hoskinson provided his perspective on crypto-regulation.
- Blockchain can be beneficial in many ways.
- Securities or commodities? There are other things to consider about cryptocurrencies first.
- THE U.S. SHOULD SEEK APPROPRIATE REGULATION TO MAINTAIN ITS PLACE AS A TECHNOLOGICAL POWER. The U.S. should seek appropriate regulation to maintain its place as a technological power.
The founder of the blockchain Cardano Charles Hoskinson appeared before a U.S. Congressional hearing to discuss the future of digital asset regulation.
Hoskinson shared his views on cryptocurrency regulation with members of the U.S. House of Representatives Subcommittee on Commodity Exchanges, Energy and Credit, the lower chamber of Congress. The technology development company behind Cardano, Input Output Global (IOG), published in a blog post a summary of your statements.
The importance of Blockchain
In his speech, the mathematician and CEO of IOG explained the basic principles as well as the multiple uses of the technology. Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. . By citing as an example some of the progress made by Cardano Hoskinson highlighted how blockchain can be leveraged to create digital identity solutions, bring value to supply chains and provide financial access to individuals.
To illustrate real-world use cases for the technology, he mentioned the U.S. meat industry as a sector that can benefit from the use of Blockchain -and already does – with verifiable and immutable a property that defines the inability to be changed, especially over time. records. The developer also shone a light on the agreements on Cardano with several African countries to bring real technological solutions to the people of that region.
“ These use cases and projects exemplify the kind of economic development and growth that blockchain technology can bring to the United States, especially to rural and remote regions of the country. “He said, arguing about the potential benefits for the country and the need for it to lead the industry globally.
Hoskinson then used these use case examples to illustrate the decentralized nature of blockchain and argue for the need for regulation that understands, responds and adapts to that nature.
Public blockchains, like many commodities, are inherently decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. and do not require permission[…] Blockchain projects operate and embody this decentralized spirit and would fail under the weight of an outdated and heavy-handed regulatory structure.
On cryptocurrency regulation
After widely praising blockchain, Hoskinson finally bridged the gap with cryptocurrencies, first pointing out that the broader industry of Blockchain cannot function properly without these assets. “ Cryptocurrencies are financial stem cells: programmable software that can be almost any asset and can change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. over time. “, they say.
Similar to the previous structure, the founder proceeded to provide some basic notions of what cryptocurrencies are and the multiple uses such assets can take on. “ The life of cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. “can be so vast that it can be used for “ verify data, transfer information or value, purchase goods, provide access to services, serve as a reward or membership program, act as a store of value or as an investment, all at the same time or at different times “, sostuvo.
With this idea he was then able to emphasize that U.S. law has never contemplated an instrument that can be so many different things at the same time; and therein lies one of the central complexities of cryptocurrency regulation.
Securities or commodities? No matter
Here, Hoskinson addressed an issue that has been central to the regulation of digital assets in the U.S. to date: their categorization as securities or commodities. “ Yes, some cryptocurrencies may be securities, some may be commodities, some may be both, but many may not be.” He said, and then delved into a more valuable consideration:
Regardless of how a cryptocurrency is labeled, three things should be kept in mind: (i) existing regulatory regimes in the U.S. never contemplated such an asset, (ii) without cryptocurrencies, most blockchain technologies simply won’t work, and (iii) any regulatory goal should be to promote appropriate consumer protections and ensure market an area or arena, online or offline, in which commercial dealings are conducted. integrity.
“ The latter can be achieved through regulatory approaches that do not necessarily require labeling a cryptocurrency as a security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. or a commodity.” he added. This leads to a conclusion that may be controversial by regulators’ standards, and that is Hoskinson’s idea of a less categorical and more flexible legislative framework to guide the regulation of the new asset class.
Regulation based on principles, not categories
The IOG CEO made it clear that neither he nor his company is opposed to regulatory efforts for the sector, however they believe that this must be appropriate and responsible, while ensuring the growth of the industry and not undermine innovation.
“ This is a new technology and a radically new asset class that cannot easily fit within the confines of laws and tests created nearly a century ago. “he said. Hoskinson also stressed that the current securities laws consumer protection systems assume, and are based on, the existence of centralized entities, and are therefore not adapted to cases of Blockchain.
He also argued that a “ category-based regulation “and that it depends on ” only from centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. actors The “possibly unsuccessful,” and argued, instead, in favor of a “ principles-based regulation The more flexible, adaptable and evolving technology can adapt and evolve with the emerging technology without strangling a start-up industry and forcing companies to relocate. “.
The US must maintain its technological leadership
Hoskinson argued that the U.S. must lead in regulatory matters in order to remain a pioneer among technological powers. Comparing the rise of the Internet with that of Blockchain He mentioned as an example the successful efforts of self-regulation in that sector, and how that favored the growth of technology companies in the country.
The United States embraced the public-private partnership that allowed the Internet to flourish and the United States to play and maintain a leading role in Internet technology. Similarly, it will take many different agencies working alongside the private sector to ensure that the U.S. blockchain industry thrives and reaches its full potential.
“ Responsible regulation must begin with an understanding of the critical role blockchain technologies can play in ensuring American competitiveness, U.S. security, particularly digital digital technologies are these electronic tools that have the ability to generate, store or even process data. infrastructure, financial inclusion for Americans, and promoting economic development and growth “he added later.
The speech concluded by highlighting how Congressional efforts will be instrumental, just as in 1990 the regulatory framework for the internet was discussed, for the future of the crypto industry. “ In conclusion, I hope we can engage in a fruitful and ongoing dialogue over the coming months as the United States debates the regulatory future of the U.S. Blockchain and cryptocurrency industry. “.
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Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Depositphotos
