US regulators are doing a ‘good job of keeping the crypto sector at bay’ – Cardano founder

The U.S. approach to cryptocurrencies could do more harm than good, and could cause major players to lose “as they create their operations,” Cardano co-founder Charles Hoskinson said.

“Especially when you look at some of the US regulators, they've done a good job of separating most of the industry. They are not clear at all,” Hoskinson told Cointelegraph on the sidelines of the recent Abu Dhabi Finance Week.

Taking a jab at the US Securities and Exchange Commission (SEC) for inconsistencies in implementing decentralization standards, Cardano (ADA) did not conduct an initial coin offering (ICO) and emphasized that ADA vouchers were being sold in the Japanese state for nothing. American involvement.

“I guess, apparently, that's under American jurisdiction,” Hoskinson said. “It was a drop in the air, but people sell on Binance and Bittrex… According to the recent court ruling with Ripple, that's not an investment contract. So it was never clear how this would be implemented.

Hoskinson also pointed out that Ethereum conducted an ICO for their token Ether (ETH) without implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, and that Bitcoin (BTC) is not a security guarantee. “Some reasons.” he said:

“There are a lot of facts and circumstances that are very ambiguous, and it just seems like a monster of the week. And if you can't find success with a layer-one like Ripple, you're going to hit the exchanges… That's not really a well-crafted policy.

In the year On November 20, the SEC filed a complaint in federal court, alleging that the crypto exchange Kraken combined customer funds and failed to register with the regulator. In the complaint, the SEC listed 16 cryptocurrencies that the ADA claims are securities.

Hoskinson said the SEC's registration process is unclear because “it's impossible to make these systems work in a reasonable way.” He argued.

“How can any issuer know who owns cryptocurrency when there is no control over its circulation? How can you do KYC and AML on everyone with an open decentralized protocol? What happens if the issuer goes out of business and the protocol still works? Who gets registered?”

Related: Binance CEO CZ's fall is the ‘end of an era' – Charles Hoskinson

Asked what he would like to see from regulators, Hoskinson said they should introduce clear, unambiguous policies and implement an open-door policy between the crypto industry, regulators and lawmakers, and update laws to address issues and, if necessary, reflect new technologies.

But while he believes litigation will continue, Hoskinson is positive that the regime and policies will change over time.

“What we see is a law like that that removes ambiguity. [Financial Innovation Act]There will be some regulation between the CFTC and the SEC to address all of this.