Cardano founder Charles Hoskinson said the U.S.’s attitude toward cryptocurrencies could do more harm than good and that the U.S. could lose major players when they “get their act together.”
“Especially when you look at some of the regulators in the U.S., they’ve done a really good job of alienating most of the industry. They just don’t know,” Hoskinson told Cointelegraph on the sidelines of the recent Abu Dhabi Financial Week.
He blasted the SEC for inconsistencies in its application of decentralization standards, highlighted that Cardano did not conduct an initial coin offering (ICO), and stated that ADA (ADA) tokens were sold on Japanese soil, There is no US involvement.
“I think, obviously, this is within the jurisdiction of the United States,” Hoskinson said. “There was an airdrop, but people then sold on Binance and Bittrex… According to the recent court ruling against Ripple, this was not an investment contract. So it’s never been clear how this applies.”
Hoskinson also noted that Ethereum conducted an ICO for its Ethereum (ETH) token without implementing mandatory know-your-customer (KYC) and anti-money laundering (AML) checks, while Bitcoin (BTC) ) is marked as a non-security. “Some reasons.” He said:
“There are a lot of facts and circumstances that are very vague, and it looks like this is just the monster of the week. If they can’t succeed with layer one like Ripple, then they’re going to go to an exchange…that’s not really a sound policy. “
On November 20, the SEC filed a lawsuit in federal court, accusing cryptocurrency exchange Kraken of commingling customer funds and failing to register with the regulator. In the complaint, the SEC listed 16 cryptocurrencies that are considered securities, including ADA.
Hoskinson argued that the SEC’s registration process is vague because “it is impossible to actually operate these systems in a reasonable manner.” He argued:
“How do issuers know who holds cryptocurrencies when they have no control over distribution? How do you conduct KYC and AML on everyone through an open, decentralized protocol? What happens if an issuer goes out of business but the protocol is still running? ?Who registers?
related: Binance CEO CZ’s downfall is ‘the end of an era’ – Charles Hoskinson
When asked what he wants regulators to do, Hoskinson said they must put in place clear, unambiguous policies and implement an open door policy between the cryptocurrency industry, regulators and lawmakers to address issues and, where necessary, Update laws from time to time to reflect emerging technologies.
While Hoskinson believes litigation will continue, he believes systems and policies will change over time:
“We may see the passage of a law that removes ambiguities like the Financial Innovation Act … and some kind of system between the CFTC and SEC to address all of these issues.”