Recap was shared by Cardano’s IOHK in recent blog post
Charles Hoskinson, the founder of Cardano, spoke about the future of digital asset regulation before the House Agriculture Committee, which is in charge of the CFTC. The recap was shared by Cardano’s IOHK in a recent blog post.
First, the founder of Cardano provided background information on Input-Output (IOG), ongoing initiatives, research and the company’s ongoing efforts in Africa.
He went on to give examples of how blockchain technology is being used to solve real-world problems, such as those faced by the beef industry. According to Hoskinson, there are several applications for blockchain technology, including improving supply chain and end-to-end industry traceability.
The IOG CEO also gives an indication of the immense economic growth and development that blockchain technology could bring to America, particularly in rural areas, by citing many IOHK projects and collaborations. The developer of Cardano remarked that for the American blockchain industry to thrive and realize its full potential, it may take the combined efforts of several agencies and the private sector.
Charles Hoskinson then explained how working with the blockchain industry toward a principles-based approach that leverages the nation’s incredible innovation capabilities could help Congress achieve meaningful regulatory outcomes.
He opines that it is crucial to recognize that category-based regulation, which is restricted to a specific jurisdiction’s borders and solely relies on centralized actors for reporting and disclosure, is unlikely to be effective in a blockchain-based decentralized ecosystem and will stifle innovation.
He points out that principles-based legislation is more adaptable and more likely to change with emerging technologies without stifling a just-starting sector or pushing businesses overseas.
Hoskinson continued that he remains in favor of appropriate and responsible regulation of digital assets and blockchain technology. However, he notes that given the novelty of the technology and the radical novelty of the asset class, it cannot easily fit within the parameters of the laws and tests established almost a century ago.