Cardano’s Charles Hoskinson Wants To Play Kingmaker In U.S. Crypto Regulation

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As a seasoned analyst with over two decades of experience navigating the complex world of finance and technology, I find Charles Hoskinson’s vision for a crypto-friendly United States under President Trump quite compelling. Having witnessed the rapid growth and transformation of the digital assets sector, I can attest to its immense potential, which could easily reach trillions of dollars in value.

Charles Hoskinson, founder of Cardano, expresses his intention to aid the United States in creating a cryptocurrency-friendly regulatory environment upon President-elect Donald Trump’s return to office. He asserts that he can contribute significantly by fostering discussions between influential figures within the crypto industry and Trump’s appointed “Crypto Advisor”.

In an interview with Shahaf Bar-Geffen, founder and CEO of COTI, Hoskinson expressed his concern that the United States is lagging behind other innovative countries in Europe, the Middle East, and Asia when it comes to cryptocurrency. He specifically mentioned Israel and Japan as nations with progressive regulations that encourage crypto growth, while he believes the U.S. has adopted a more antagonistic approach towards the industry.

According to Hoskinson, Trump intends to address the current situation by appointing a “Crypto Czar.” This move is expected as Trump believes he was the one who created this predicament, but wants resolution. He plans to collaborate with both Senate and Congress now that there’s a unified government. Additionally, he aims to appoint pro-crypto heads for the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission).

Crypto Industry Must Step Up Now

It remains uncertain which individual Trump will choose for his Crypto Advisor role. Initially, there were reports suggesting David Sacks, former COO of PayPal, was the top contender. However, it’s been speculated that he has been removed from consideration due to his reluctance to completely sell off his stake in Craft Ventures.

Nonetheless, Hoskinson said Trump’s promise to hire somebody to take control of the crypto industry is a major step towards the U.S. introducing a more accommodating regulatory environment. 

In simpler terms, it’s crucial for the cryptocurrency sector to proactively explore more effective methods of governance for innovative technologies such as decentralized finance, decentralized autonomous organizations, and smart contracts. This could involve finding ways to ensure these technologies are regulated in a manner that is both beneficial and safe for users.

According to Hoskinson, it’s crucial for the industry to make good use of the next 6-9 months by engaging in conversations about what actions, such as executive orders, administrative adjustments, and legislative changes, should be taken to establish a fair system that works for everyone.

U.S. Risks Being Sidelined Without Regulation

Charles Hoskinson, known for his early work on the Ethereum network a decade ago, emphasizes that the United States should act swiftly to avoid falling behind in a future industry potentially worth between $10 trillion and $20 trillion. He noted that the current regulatory ambiguity has compelled numerous cryptocurrency projects to bypass the U.S. market and concentrate their efforts on countries with more favorable crypto regulations.

One of the notable projects mentioned by Hoskinson is COTI. He highlighted that this project has shown significant progress in various nations, such as Israel, where they are collaborating with the country’s central bank on the “Digital Shekel” endeavor.

Currently, COTI is valued at approximately $250 million. Remarkably, this entire system isn’t even comparable to that of the United States, he noted. This is just one instance among countless others worldwide, and consider the potential benefits such initiatives could bring to the U.S. Conversely, imagine the advantages the U.S. could offer these projects.

Charles Hoskinson criticized the departing Biden administration for making arbitrary decisions that affected the entire cryptocurrency industry, resulting in similar actions being taken. He described this as creating a barrier around the U.S., labeling it as dangerous and advising others not to interact with it. “They essentially told us to treat the U.S. like it’s radioactive,” he said. “The impact has been significant and damaging.

Luckily, Hoskinson thinks it’s still possible for the U.S. to change its stance regarding cryptocurrencies, and he envisions it as the ideal place to start and manage a crypto business. He believes this can be achieved by fundamentally altering the U.S. government’s approach towards financial innovation, an adjustment he expects will occur during Trump’s term.

He stated that the team Trump is building appears highly skilled and capable. He’s confident that not just American citizens, but also international businesspeople, will be able to collaborate with this team and establish a global system. This system should be comprehensible to institutions like the IMF and FATF, and it should function seamlessly within existing foreign regulations.

The “Connector-In-Chief” 

Here, Hoskinson believes he can contribute significantly by contributing to the development of the framework. He shared this with Bar-Geffen, expressing that he views himself as a “chief connector”, leveraging his industry connections and relationships with the U.S. government to foster dialogue between policymakers and leading experts in the international crypto sphere.

In his strategy, Hoskinson revealed he’s collaborating with several individuals to distribute a questionnaire to significant U.S. cryptocurrency businesses. This is aimed at gathering their insights which he can then share with the Crypto Tzar and other influential figures in the Senate and Congress. Essentially, the goal is to create an informal platform for the industry to express what’s working, what needs improvement, and what challenges they face.

Hoskinson proposed an innovative approach: inviting individuals from foreign nations typically not involved in the U.S. political sphere, such as those from the ADGM in Abu Dhabi, FINMA in Switzerland, and the Monetary Authority of Singapore, to engage with U.S. lawmakers and administration officials. The purpose is to let these individuals share their solutions to problems they’ve already addressed in their respective countries,” Hoskinson explained. This move, he acknowledged, would be a significant departure from the U.S.’s usual practice, as it typically regulates matters at home before exporting its ideas abroad.

As a researcher, I find it imperative that we should seize the opportunity to learn from others’ experiences, particularly avoiding their past errors as we forge ahead. To that end, President Trump has articulated his vision clearly: he envisions the United States as the premier destination for establishing and operating cryptocurrency or blockchain businesses.

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2024-12-23 14:32