Cardano founder, Charles Hoskinson has testified in front of the US Congress about crypto regulations. He suggested that Congress should make cryptocurrency regulations but should leave compliance to software developers in the industry.
Charles Hoskinson Remains Keen to Work With US Regulators
Appearing in a US congressional hearing on Thursday, Hoskinson said that crypto regulation should follow the model of banking self-regulation, telling legislators “it’s not the SEC or the CFTC going out there doing KYC-AML, it’s banks.” According to him, crypto exchanges should be the ones who are doing KYC/AML for the industry, adding that self-regulation would help ensure that the industry is “following best practices” and would be more effective than “a bunch of different agencies” trying to regulate the space.
Currently, the US Security and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are competing to perform regulatory oversight over the crypto industry. Hoskinson told the commission that cryptocurrencies could perform most regulatory work automatically since they can store and transfer data. He also proposed that Congress should allow the crypto industry to establish a self-regulating organization (SRO) like the private banking industry, which serves as a model for regulation compliance.
Hoskinson’s June 23 testimonial is already available on the IOHK website, implying that he remains interested in collaborating with federal regulators to create new regulations while stating that compliance with regulations and legislation coming out of the US “must be a guiding value for the blockchain industry.”