“For the US it will be very difficult to properly regulate cryptocurrencies,” says Charles Hoskinson – DiarioBitcoin

US authorities capture nuclear engineer after receiving cryptocurrencies for the sale of secret plans - DiarioBitcoin

"For the US it will be very difficult to properly regulate cryptocurrencies," says Charles Hoskinson - DiarioBitcoin For Angel Di Matteo @shadowargel

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.

See also  Tornado Cash, USDC and Github expose centralization around cryptocurrencies

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.

See also  RadioShack is now a cryptocurrency company - DiarioBitcoin

On the other hand, he also highlighted that business processes could be much more reliable if supported with blockchain and digital currencies, as this would make them much more trustworthy and would not require the intermediation of trusted third parties. In that sense, he supported his allegation by citing Bitcoin, whose most emblematic use case was the fact of enabling the exchange of value between peers without any type of manipulation by external entities.

Smart contracts constitute the application of the sense of decentralization and immutability beyond cryptocurrencies, because the systems that implement them are not subject to political conditions, outside interests or extraordinary conditions, they are lines of code that are executed automatically fulfilled the originally established conditions.

And finally, Hoskinson closed with this idea:

“[Blockchain] it is not influenced by the politics of the day or the geopolitics of large nations over smaller ones…it doesn’t care who you are or where you are…the code just gets the job done.”

Recommended reading

Source: Decrypt

Angel Di Matteo version / DailyBitcoin

Picture of unsplash

WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

See also  Difficulty Adjustment Makes Bitcoin Mining More Profitable

Leave a Comment

Your email address will not be published.