The regulation of cryptocurrencies should be carried out in the form of a public-private partnership similar to the Internet. This view was expressed by Cardano founder Charles Hoskinson at a hearing in the US Congress.

“I and many others in the industry advocate appropriate and responsible regulation of digital assets and blockchain. “But it’s a new technology and a radical new asset class that doesn’t fit easily within the framework of laws and tests created almost a century ago.”

According to him, due to the diversity and use cases of cryptocurrencies, they cannot be clearly labeled as securities or commodities. Hoskinson says these beings can be first, second, or even both at the same time.

He noted that US lawmakers have not yet encountered a regulation that “could be very different things at the same time”.

Hoskinson suggests congressmen should remember three things:

• current US regulatory regimes have never provided for such assets;
• blockchain technologies do not work without cryptocurrencies;
• rules should promote appropriate consumer protection and market integrity.

“Category-based regulation, which is limited to the boundaries of a particular jurisdiction and relies only on centralized entities for reporting and disclosure, is unlikely to be effective in a decentralized blockchain-based ecosystem and is a barrier to innovation,” he said.

According to Hoskinson, it is necessary to follow the path of the internet in regulating the blockchain industry in the United States. He emphasized that instead of a single oversight body in the country, “thousands of interconnected institutions and private companies” work together.

“Similarly, it will take many different agencies working with the private sector to ensure the US blockchain industry thrives and reaches its full potential,” Hoskinson said. Said.

In response to a question from Congressman Austin Scott, he stated that blockchain technology makes it possible to take most of the regulatory action automatically. As an example, Hoskinson demonstrated the ability to programmatically block a transaction prior to compatibility review.

Recall that the head of the US Federal Reserve, Jerome Powell, said that the crypto industry needs a “better regulatory framework.”

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