Charles Hoskinson, the inventor of Cardano and CEO of Input-Output Global (IOG), spoke about current regulations in the United States. Hoskinson believes the crypto market will see a long-overdue regulatory framework in the coming months.
The CEO of IOG stated in a new video for his YouTube channel that the current market cap of the entire crypto market will force regulators and authorities in that country to take action. According to Hoskinson, in recent years under the previous presidential administration there has been an environment with a lack of political party unity.
However, current US President Joe Biden has built his career in Washington. Therefore has more experience in negotiating with the political forces. In 2016 and 2017, the crypto market could have been regulated and taken out of its “gray zone” with a different administration.
As a result of Biden’s political skills, he managed to pass a new stimulus law. The new target could be an infrastructure bill worth an estimated $ 2 trillion. Later, the presidential administration could request an individual tax increase. This could be the turning point for the crypto market, Hoskinson said:
It is very likely that cryptocurrency regulation will be pushed into that bill, as a consumer protection package. As with infrastructure, they’ve rolled some of the Green New deal into it. It is very likely that this will happen.
Cardano’s inventor blames the dog
According to the CEO of IOG, there is a perception of a “Ponzi-like trading behavior” within the crypto market and its main trends: non-replaceable tokens (NFTs), decentralized finance (DeFi) and the Dogecoin (DOGE) craze. The latter has been particularly responsible for drawing negative attention, Hoskinson said.
He further added that “copy projects” like DOGE and their total market cap, which was right behind ADA at $ 40 billion at the time of writing, are not “normal.” Hoskinson highlighted other flaws in the DOGE design, such as inflationary supply and centralization.
Cardano’s inventor is positive that a crypto regulation will be passed because of “unity” in the House of Representatives and the appointment of Gary Gensler as chair of the Securities and Exchange Commission (SEC). Hoskinson said:
Gensler has a history of being very proactive with enforcement for his earlier time at the CFTC and he understands our industry extremely well, teaching at MIT on cryptocurrencies. The SEC is in a position where, through enforcement and soon to be a regulatory mandate, it will be more active in enforcing things they will be wrong.
Hoskinson predicts that the SEC, along with FinCEN and other US law enforcement departments, will act first against DeFi. To make it clear that he does not “endorse” the alleged future actions of the regulator, Cardano’s inventor said that these entities tend to “act” in this way under democratic governance.
Cardano has enough “flexibility” to withstand a potential regulatory crackdown, according to Hoskinson. This platform’s greatest assets are “its monetary policy and philosophy,” added Hoskinson:
When you talked about activities that could be classified as regulated, you create a toolbox for people to participate in that activity at scale and to do it in a way that makes their government comfortable (…). Once you have that capability (of decentralized identities), you can talk about regulated DeFi (…).
ADA is trading at $ 1.26 with a gain of 1.9% on the daily chart. In the weekly and monthly, ADA has 1.9% and 4.7% profit respectively.