Cardano founder Charles Hoskinson believes that comprehensive regulation of the cryptocurrency industry is more feasible when formed by separate directions rather than combining a large number of norms into one document. In his view, an overly broad bill creates additional burdens on regulators and may complicate the application of new rules to rapidly developing market segments, including decentralized finance. Hoskinson noted that more than a year ago, he spoke about the difficulties of promoting a large-scale initiative and linked them to the need to pre-establish broader consensus among process participants.
As an alternative, the entrepreneur proposed dividing regulation into several independent blocks. Among them, he highlighted stablecoins, digital securities, crypto assets considered as commodities, custodial services, taxation, and DeFi. According to Hoskinson, this approach would allow for separate discussions of requirements for each segment and more accurately define the powers of government bodies. He suggested paying special attention to the definition of digital securities and how existing norms on traditional securities should be applied to new classes of digital assets. In his assessment, a narrower regulatory structure could simplify the search for solutions to contentious issues.
Another area for analysis, according to Hoskinson, is foreign experience. In particular, he proposed studying the European Markets in Crypto-Assets (MiCA) regulation, as well as the rules in place in the Abu Dhabi Global Market (ADGM). Additionally, the entrepreneur mentioned the regulation of the crypto industry in Japan, South Korea, Vietnam, and other jurisdictions. Such a comparative analysis, in his opinion, would help to assess the consequences of various approaches in advance and avoid an excessively complex construction of rules. At the core of his proposal is the idea of sequential regulation of individual classes of digital assets, taking into account their functions and features, rather than creating a unified system of requirements for the entire industry.
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