According to Hoskinson, the classifications managed by the US to classify each cryptocurrency make it very difficult to think of a possible regulation for common digital assets.
The CEO of IOHK / IOG and main developer of Cardano, Charles Hoskinson pointed out this week that the regulatory system in the US is very ill equipped to handle the revolutionary nature of cryptocurrencies, so they would not be prepared to effectively regulate the large number of crypto assets that exist to date.
Difficulties in regulating cryptocurrencies in the US
Hoskinson’s remarks came to the fore during his phone talk for the Digital Assets and Cryptocurrencies Summit organized by the middle Financial Timeswhere the main figure behind Cardano highlighted the difficulties faced by regulatory agencies in the US, especially in light of the boom that these assets have both in local and international markets.
In this regard, Hoskinson pointed out that in the US the regulations go by category, since some apply to securities, others to basic products and the rest points to things that can be considered currencies. It is from this point where the regulatory bodies begin to build the evaluation for each case, but it may happen that many cryptocurrencies contemplate two or more of these categories from their premise and usability.
In this sense, Hoskinson highlighted the case of Bitcoin, which can be considered a currency because it is already formally so in El Salvador, or it can be considered a basic product such as gold. Here the difficulty for the regulators lies in properly categorizing the asset, and consequently determining the legal treatment that would apply to the cryptocurrency, taking due care that all the guidelines really apply to all the generality of things that can be done with the currency. digital.
the potential of blockchain and smart contracts
Regulatory issues aside, Hoskinson made a few mentions of the potential for blockchain and smart contracts citing some use cases that could benefit from these technologies.
Among those mentioned, the manager behind Cardano highlighted the ESG standards, which are used by the most prominent centralized entities in the world to establish criteria on the environmentally friendly nature of project operations. Here Hoskinson stressed that the definitions are at the discretion of the responsible agencies, so these can be lax and biased depending on who they apply to and in what jurisdiction.
In this regard, he stressed that blockchain and smart contracts could serve to create new standards that standardize definitions, procedures and compliance rules, all in a fully reliable and transparent way. In this way, the real problems associated with global warming and climate change could be addressed.
Angel Di Matteo version / DailyBitcoin
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