Hoskinson presented the key points before Congress about the usefulness of blockchain technology as well as the blockchain industry’s appropriate regulatory practices. Hoskinson stated in his prepared statement that distributed ledger technology will provide current industries with transparency and auditing.
Hoskinson made the observation that one of the possible applications of blockchain technology was in the agriculture industry. Employing blockchain technology to manage and monitor economic activities inside the industry might be beneficial.
The creator of Cardano made reference to one of the new businesses in the agriculture industry that has begun using blockchain technology. BeefChain is a company that gives customers the ability to discover the origin of the beef products they purchase. When consumers purchase beef, they don’t have to worry about whether or not the farmers are trustworthy since they can check their health.
The “global community of technologists” wrote a public letter in May, stating that blockchain technology and cryptos did not have a must need to use scenarios other than the promotion of crime, frauds, and pollution. The letter was delivered in response to a previous letter written by the same group. The letter stating that Bitcoin may be able to achieve financial sovereignty has been met with opposition from a number of human rights advocates.
In addition, Hoskinson provided an overview of the core concepts underlying blockchain technology. He was of the opinion that this should serve as a foundation for the governance of blockchain technology. He went on to say that blockchain technology encouraged creativity and concentrated on the fundamentals.
The co-founder of Cardano made the following statement: “Principles-based legislation, which is far more adaptable, can develop and expand with the young technology without suffocating a sector that has only just begun and driving firms to go outside.”
Given the recent introduction of a bill by Senators Cynthia Lummis and Kirsten Gillibrand, the current crypto regulatory environment in the United States may be subject to revision. According to the bill, the Securities and Exchange Commission (SEC) of the United States and the Commodity Futures Trading Commission (CFTC) of the United States should be engaged in the process of regulating cryptocurrency in the United States.
Bitcoin may be categorized as a commodity, according to the chairmen of both the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC). However, the categorization of other tokens, such as Cardano, which is widely regarded as one of the most successful cryptocurrencies, is not yet entirely apparent. The majority of cryptocurrencies now available on the market are considered securities, as stated by the Chair of the SEC, Gary Gensler.
Hoskinson believed that cryptos could not be categorized as equities or tokens for the simple reason that they had characteristics that prevented them from being placed in either of those categories. The Chief Executive Officer has emphasized that appropriate restrictions are necessary to ensure the safety of customers.