Solana’s co-founder, Anatoly Yakovenko, recently asserted that the Congress must regulate crypto to retain indigenous talent. However, regulators must first learn how crypto’s underlying blockchain technology works.
Yakovenko pointed out that a new generation of blockchain developers has been diving into their entrepreneurial endeavors of late. “Many are in the United States,” he said, but added, “increasingly, many are not.” Founders have evidently been leaving America. Citing Electric Capital’s data, the Solana co-founder pointed out that in 2018, the U.S. was home to 42% of the world’s open-source blockchain developers. However, the number shrank to 29% by 2022. Chalking out the dilemma faced by creators, Yakovenko wrote,
“It’s well-documented that there’s no viable path to reasonable regulatory certainty in the space. For young entrepreneurs, the absence of clear rules is terrifying. They see public, multi-billion dollar companies struggle to navigate the legal landscape, and wonder how their tiny project will survive.”
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Regulators Should Experiment With Crypto, Blockchain Themselves: Solana Co-founder
Leaving aside the volatility, skeptics have remained quite critical about crypto scams. The Solana co-founder pointed out that this has been the case with every new technology. That being said, the effort to eliminate them should not stop. He added,
“A well-functioning economy shouldn’t punish an entire industry for the actions of its worst element. Many of us are here because we want to create real value–and we want American values at the foundation of the world’s most impactful companies.”
Owing to rulings in court battles, U.S. investors have gradually been getting regulatory clarity. However, before drafting comprehensive rules going forward, regulators ought to experiment with the technology themselves. Currently, the ethics rules forbid officials who regulate this asset class and its underlying technology from using them. As a result, it becomes challenging to come up with a good framework. In fact, the Solana co-founder exclaimed, “Imagine trying to regulate social media without having ever opened Facebook!”
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Along with providing clarity on the regulatory front, the Solana co-founder believed that regulators could do a lot more. Revealing how, he noted,
“Beyond legislation, our government should be at the forefront of investing in blockchain research and development. European and Asian governments are already investing in blockchain. We should do the same.”
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