Charles Hoskinson shared his opinion on the recent regulatory crackdown on the crypto companies and noted that the FTX bankruptcy incident & one US bill are big reasons behind the rude enforcement action from the US Securities regulatory body.
In the last two weeks, the US authorities showed significant rude enforcement action against the crypto sector. In particular, the United States Securities and Exchange Commission (SEC) fined $30 million to the Kraken exchange over its crypto staking services and sent a Wells notice to the Stablecoin issuer company Paxos over BUSD offerings. And also New York financial watchdog ordered Paxos to stop minting new BUSD stablecoins.
On 20 Feb 2023, Kraken co-founder Jesse Powell said that US authorities are trying to degrade the confidence of the crypto sector by stealing basic resources from the sector.
Charles Hoskinson, the founder of Cardano blockchain, responded to this statement of Kraken co-founder and said that he agrees with his opinion.
On 19 Feb 2023, Florida-based attorney Drew Hinkes shared information related to the “Digital Property Protection and Law Enforcement Act”, a bill which was silently passed. According to this bill, there is a provision where rules will force the smart contracts & blockchain networks to reverse the crypto transactions.
Hoskinson noted that the introduced bill may bring several problems for all the crypto networks & also for crypto companies badly.
Charles Hoskinson to comply with US rules
As a responsible crypto entrepreneur, Hoskinson always supported government bills and also designed the ecosystem of Cardano blockchain to comply with the laws & rules.
After the SEC enforcement action on Kraken’s crypto staking services, Hoskinson proposed a new model of the staking system in the Cardano Blockchain.
Hoskinson said that the new model will mandate all people to go through a KYC procedure to provide their details before going through crypto staking. However, Hoskinson faced backlash from the crypto community but he explained that it will not change anything & only an effort to comply with the regulation system & survive in the future.
Read also: Hong Kong getting softer backing from crypto hater China
Cardano founder explains why US authorities are rudely taking action against crypto companies