Cardano founder Charles Hoskinson levied sharp criticism against the US crypto policy this week. The founder argues inconsistent government regulations risk alienating industry innovation and driving companies abroad.
In an interview at the Abu Dhabi Finance Week conference with CoinTelegraph, Hoskinson targeted the U.S. Securities and Exchange Commission as a prime example of the escalating threat posed by ambiguous oversight and heavy-handed enforcement actions.
“When you look at some of the U.S. regulators, in particular, they’ve done a really good job of alienating most of the industry. They aren’t clear at all,” the Cardano chief declared when discussing recent upheaval around digital asset security designations.
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Hoskinson questions the US SEC’s actions and crypto policy
Hoskinson questioned why the SEC continues targeting certain decentralized networks as securities after conceding that status does not apply to Bitcoin and Ethereum, two much larger crypto assets sharing similarities with those now under fire like Ripple. The SEC has had strong opposition to cryptocurrency as a whole in arguing for US crypto policy.
He specifically cited Cardano’s own ADA as one undeserving of the securities label. He bases this argument on the method of original distribution and the blockchain’s open-source decentralization. Hoskinson argued that applying registration and disclosure requirements to such networks that lack centralized control simply creates unworkable burdens.
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The entrepreneur further warned that crackdowns on crypto trading platforms only compound confusion and anxiety for good-faith operators trying to comply with ill-fitting regulations derived from a traditional financial framework.
Instead, Hoskinson urges regulators to embrace transparency and collaborate with legislators to modernize practical ground rules that foster responsibility without sacrificing innovation. The current litigious environment, courting years of legal uncertainty, he says, serves little productive purpose.