Cardano Co-Founder Testifies Before Congress Defending Blockchain

Charles Hoskinson has defended blockchain technology before the US House Subcommittee on Commodity Exchanges, Energy, and Credit. Hoskinson is the CEO of Input-Output Global (IOK) and the co-founder of the Cardano network.

Cardano founder testifies before Congress

Hoskinson provided Congress with the necessary information on blockchain technology’s utility and the industry’s responsible regulations. In prepared testimony, Hoskinson said that distributed ledger technologies would offer transparency and audits to the existing sectors.

Hoskinson noted that one of the potential use cases of blockchain was in the agricultural sector. The sector could benefit from managing and overseeing economic events using blockchain.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

The Cardano founder mentioned one of the startups in the agricultural sector that have implemented blockchain technology. BeefChain is a startup that allows consumers to trace the source of their beef products. Consumers can buy beef knowing that they can verify the health and reliability of the producers.

In May, the “global community of technologists” sent a letter to Congress saying that blockchain technologies and cryptocurrencies did not have any use cases besides promoting crime, scams, and pollution. Several human rights activists have also opposed the letter saying that Bitcoin could promote financial sovereignty.

Hoskinson also outlined the principles of blockchain technology, believing that it should lay the groundwork for the regulation of blockchain technology. He added that blockchain technology promoted innovation and focused on the principles.

“Principles-based regulation, which is more flexible, can adapt and evolve alongside the nascent technology without strangling an industry that has only started and forcing companies abroad,” the Cardano co-founder added.

Crypto regulations in the US

The crypto regulatory framework in the US could change following a bill recently introduced by Senators Cynthia Lummis and Kirsten Gillibrand. The bill said that the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) should be involved in regulating crypto in the US.

The chairs of the SEC and the CFTC have agreed that Bitcoin can be classified as a commodity. However, the classification of other tokens, including Cardano, one of the best cryptos, is still unclear. According to SEC Chair Gary Gensler, most cryptocurrencies in the market are securities.

According to Hoskinson, cryptocurrencies could not be classified as securities or tokens, adding that they had attributes that did not make them fall under either category. The CEO has argued that the right regulations were needed to protect consumers.

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Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.