Cardano Founder Meets With Congress to Discuss Crypto Regulation
Stating that compliance should be met through software and not regulatory authorities.
The founder of Cardano, Charles Hoskinson, met with Congress to discuss regulation in the cryptocurrency industry and presented the idea of self-regulation through artificial intelligence (AI) software.
Professor Brummer is one of the best legal minds of this age on Cryptocurrencies and Blockchain technology. It was an honor testifying with him https://t.co/Za2wKBL36K
— Charles Hoskinson (@IOHK_Charles) June 23, 2022
Hoskinson’s recommendations are based on the fact that there are thousands of individual cryptocurrencies and millions of individual traders in the US alone. The Cardano founder illustrated that even if the Internal Revenue Service (IRS) quadrupled its size, it would not be enough to audit every American.
“It’s not possible to regulate all these currencies,” said Representative Austin Scott from Georgia, in agreement with Hoskinson’s sentiment, adding that neither the SEC nor the CFTC has the power to oversee the thousands of cryptocurrencies.
“It’s a public-private partnership. What needs to be done is to establish those boundaries, then what we can do as innovators is write software to help make that happen, said Hoskinson.
To curb the issues of a centralized middle man and lack of staffing, Hoskinson suggested the creation of a “self-certification system” that would allow for automatic compliance monitoring until an anomaly is discovered. In that case, a financial authority would take over and review the situation.
“If we are to discuss how to regulate our industry, protect consumers, and align growth with realities of modern society. Then we ought to have the humility to admit innovation makes specifics difficult — we should focus on principles instead,” said Hoskinson, adding that “cryptocurrencies can be nearly any asset and can change over time, principles don’t change.”
The Cardano founder closed by sharing that he hopes the industry and US government can continue to engage in a “fruitful and ongoing dialog throughout the coming months as the United States debates the regulatory future of the American Blockchain and Cryptocurrency industry.”
It is Hoskinson’s hope that Congress will work with industry leaders to produce principle lead regulations that will bring great financial benefits to the industry and country as a whole. He likened the opportunities to that of prior Congresses in the ’90s discussing regulatory framework for the internet.
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