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Cardano Founder to Help Shape U.S. Crypto Policy
Nov. 20, 2024. 4 mins. read.
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A new crypto chapter unfolds: Cardano’s Charles Hoskinson takes center stage in shaping U.S. policy amid Trump’s pro-crypto administration. Is clarity finally on the horizon?
Introduction
Charles Hoskinson, founder of Cardano and Input Output (IOHK), is stepping into a significant role in shaping cryptocurrency policy in the United States. Hoskinson announced this development on Twitter on November 9, which comes at a critical time for the industry, at the election of pro-crypto presidential candidate Donald Trump over Kamala Harris.
Hoskinson underscored the need for regulatory clarity to move the crypto industry forward and undo the damage that has been done over the years.
The Timing is Critical
Hoskinson’s initiative coincides with a unique political landscape. The crypto industry splashed more than $100 million to help elect pro-crypto candidates. It was an election where crypto voters found their voice in order to have their industry heard. In the end, the Republican party won the election ‘trifecta’, gaining control of the presidency, Senate, and House of Representatives.
Hoskinson calls it the ‘best opportunity’ to influence crypto policy. President Trump campaigned on promises of regulatory clarity for cryptocurrencies, and the new administration seems to be playing ball to deliver on these commitments.
The Republican’s clean sweep aligns with the crypto industry’s need for a supportive regulatory environment. With no clear regulations, many crypto companies suffered at the hands of the U.S. Securities and Exchanges Commission (SEC).
The Importance of Regulatory Clarity
The lack of clear regulations has been a longstanding issue for the crypto industry in the USA. Over the years, companies like Ripple, Kraken and Coinbase have faced significant challenges, such as prolonged legal battles with the SEC, which Ripple CEO Brad Garlinghouse claims has stifled innovation.
Due to the crackdown and regulatory uncertainty, several U.S. crypto companies threatened to relocate overseas. However, the tide is turning in the hope that regulatory clarity will bring more developers and investors to the industry and to the USA.
The Hoskinson’s Vision
Hoskinson declared, “We have to do this, and we have to get it done.”
His vision includes a policy office in Washington, D.C., staffed by experts dedicated to working with lawmakers and administration officials. The goal is a bipartisan group that fosters innovation while addressing sensible regulatory concerns.
This initiative is expected to provide the clarity needed for crypto businesses to thrive without fear of regulatory retaliation. Hoskinson wants to help create a transparent framework that defines what constitutes a security versus a commodity.
Pro-Crypto U.S. Policy is a Watershed Moment
The inclusion of crypto figureheads in the new Trump administration is truly a transformative moment for the entire industry. By advocating for regulations crafted by the crypto community, Hoskinson seeks to ensure that the U.S. remains a global leader in blockchain innovation. He has openly criticized the influence of large financial entities like BlackRock on policy-making, emphasizing the need for industry-driven solutions.
Hoskinson sees this as an opportunity to reverse the damage caused by the SEC due to regulatory overreach. The crypto industry has found a powerful friend in Trump and is now taking the fight to the SEC.
On the campaign trail, specifically at the Nashville Bitcoin Conference, Trump proposed a strategic BTC reserve for the USA and pledged crypto-friendly reforms. The SEC is silent on Trump’s BTC reserve proposal.
According to Fox Business, 18 states are suing the SEC and its five commissioners for unfair prosecution of U.S. crypto companies. The SEC has taken action against hundreds of crypto firms and individuals. You can view them here.
If successful, the pro-crypto U.S. policy could set a precedent for how blockchain companies engage with governments worldwide. This approach not only enhances the legitimacy of the industry but also paves the way for the broader adoption of decentralized technologies. The days of the USA trying to kill crypto seem to be over.
Impact on the Market
The announcement has already had a tangible impact. Cardano’s ADA token surged massively following the news, reaching a seven-month high. This price movement reflects growing investor confidence in the potential alignment of U.S. regulations with the needs of the crypto industry. Market participants are optimistic that clear rules will reduce uncertainty and encourage institutional adoption of blockchain technologies.
Hoskinson’s move also positions Cardano as a leader in bridging the gap between technological innovation and policy. By taking an active role in shaping regulations, Hoskinson aims to foster an environment where decentralized platforms can coexist with traditional financial systems.
Wrapping Up
Hoskinson’s decision to take an active role in shaping U.S. crypto policy is a bold step forward for the industry:
- With clear regulations, the blockchain space can unlock its full potential, fostering innovation and economic opportunity.
- With industry experts helping shape policy, the crypto space has the best shot to be where it wants to be.
The true impact of these shifts will be known soon.
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1 Comments
One thought on “Cardano Founder to Help Shape U.S. Crypto Policy”
It is beginning to look like this election outcome became a true watershed moment for different communities coming together to build a better operating environment to everyone. Even ideas for technological interoperability and collaboration are reaching new speed and excitement. Perhaps the days of tribalism are finally coming to an end.
🟨 😴 😡 ❌ 🤮 💩