Charles Hoskinson, the co-founder of Cardano, spoke before the US Congress about regulating cryptocurrencies. He gave representatives an explanation of why he believes that openness is a crucial industry value.
According to Hoskinson, the notion is that crypto regulation should be structured similarly to how banks self-regulate. He told legislators that “it’s not the SEC or CFTC going out there performing KYC/AML; it’s banks” on June 23 during a congressional session in which he equated the optimal solution for crypto regulation to that of banking self-regulation. They are the ones fighting in the front.
In the same manner, “the exchanges are going to be the ones who are handling KYC/AML” for cryptocurrencies, Hoskinson stated.
Hoskinson stated that self-regulation is the best for the industry
Self-regulation, he continued, would be more efficient than “a lot of different bodies” trying to govern the market and would assist guarantee that the business is “following best practices.”
Two of the financial regulators battling it out for control in the cryptocurrency field are the SEC and the CFTC.
Hoskinson’s testimony comes at a time when Congress is debating how to regulate the cryptocurrency sector. The hearings are a part of lawmakers’ efforts to comprehend the technology and its effects on consumers, investors, and the financial system.
According to Hoskinson, a large portion of this regulatory job might be carried out automatically by cryptocurrencies because they can store and transfer data. The private banking sector, which serves as a model for regulation compliance, is another example he used to support allowing the crypto business to establish self-regulatory organizations (SRO).
Hoskinson expressed interest in working with federal authorities to develop new standards in a testimonial posted on the IOHK website on June 23. “A driving value for the blockchain sector must be compliance with rules and regulations coming from the United States.