According to Charles Hoskinson, co-founder of the Cardano (ADA) platform and CEO of the blockchain consultancy and research firm IOHK.
Hoskinson appeared before the Committee on Agriculture of the House of Representatives, the lower house of the US legislature, to testify at a hearing on the future of digital assets and regulation. The regulatory framework developed for legacy finance does not match the transformation that blockchain and crypto have brought to the global economy, the entrepreneur argued.
“Our regulatory tools, risk management systems and oversight processes were never designed for such speed, scale and rapid evolution,” Hoskinson said.
“If we want to discuss how to regulate our industry… then we have to have the humility to admit that innovation makes the details difficult,” according to the businessman.
Responding to a question related to the need for more regulation on the crypto industry, Hoskinson called crypto-assets the most transparent financial asset in the world and said the industry as a whole is “all about of transparency” and best suited to self-certification. .
He added that if someone, for example, is interested in compliance, it is not the Security and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) “go out” and do know-your-customer and anti-money laundering activities. Instead, he laments, “it’s the banks that do this stuff. So it’s a public-private partnership.”
According to Hoskinson,
“What we can do as technologists is create a certification system, and what can happen is that in the event of anomalies, particular cases which would often be rare, the CFTC or another regulator can look and say, well, let’s investigate this.”
– Charles Hoskinson on the Lummis-Gillibrand Act on Responsible Financial Innovation
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