The head of Cardano proposed that the U.S. Congress provide the cryptocurrency market an opportunity for self-regulation.
Cardano co-founder Charles Hoskinson believes regulation of the cryptocurrency market is a necessary step. However, he says, the rules for the crypto industry should be determined by the industry itself, not by regulators. The head of Cordano said this during testimony before the House Committee.
According to Hoskinson, crypto regulation should be similar to banking self-regulation, that is, without the direct involvement of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Hoskinson’s main proposals for self-regulation of the cryptocurrency sector were:
- The crypto industry should be able to create self-regulating organizations (SROs) that would ensure regulatory compliance, as is the case in the private banking industry.
- Creating a “self-certification system” for the cryptocurrency industry that would automatically monitor regulatory compliance. If violations are found, regulators would be able to review them privately.
- Cryptocurrencies should be programmed so that transactions are only processed after they automatically pass regulatory review.
Hoskinson previously testified at a hearing in the U.S. House of Representatives, confirming his willingness to work with federal regulators to develop rules for the cryptocurrency market. At the same time, the head of Cardano noted that blockchain “is a new technology and a radically new asset class that can not readily fit within the confines of the laws and tests created almost a century ago.”
Recall that President Joe Biden signed the decree to regulate the cryptocurrency market in the U.S. in March of this year. At that time, the U.K. also began preparing the regulatory framework for the cryptocurrency market, and the European Parliament passed a bill on regulating crypto-assets.
