The cryptocurrency industry has been in the crosshairs of Congress following the FTX fallout.
Charles Hoskinson, the Input Output Global CEO and founder of the popular smart contract platform Cardano (ADA) told the crypto community on Monday not to expect crypto regulation from the United States Congress any time soon. Per the recent comment, the Cardano creator also stated why he thinks the U.S. Congress might delay regulating the cryptocurrency market.
According to Hoskinson, who was hosted by Congress sometime in 2022, the legislative arm would have likely handed out a regulatory framework for the nascent industry in 2023 but not for the FTX exchange implosion.
This goes further to affirm that the Sam-Bankman Fried and FTX incident is a huge setback for the emerging sector. More so, he included the upcoming 2024 United States election as another factor hindering crypto regulation from Congress.
He said, “Given the current state of Washington and that 2024 is an election year, we have a 6-9 month window this year and then 2025 is the next one for progress legislatively. Before FTX, I would say 2023, but now I think 2025 is right.”
Given the current state of Washington and that 2024 is an election year, we have a 6-9 month window this year and then 2025 is the next one for progress legislatively. Before FTX, I would say 2023, but now I think 2025 is right
— Charles Hoskinson (@IOHK_Charles) January 23, 2023
In response, the Chief Strategy Officer at Binance Patrick Hillman agreed with Hoskinson stating that “there is some hope, however, in that there are a number of MoCs that are seeking to establish a more healthy regulatory framework for the industry.”
Hoskinson’s latest comment also comes in agreement with an earlier claim from John Deaton. The popular attorney representing over 75,000 XRP holders in the Ripple-SEC slammed Congress asserting that the United States is being left behind in terms of crypto adoption. Deaton added that he doesn’t see sensible crypto regulation being passed into law anytime soon.
He wrote, “I believe the 1st or 2nd Quarter of 2025 is likely the earliest it could get done and I may be being overly optimistic with that time estimate. The market will continue to receive guidance only through judicial results from the SEC’s Regulation by Enforcement policy.”
I believe the 1st or 2nd Quarter of 2025 is likely the earliest it could get done and I may be being overly optimistic with that time estimate.
The market will continue to receive guidance only through judicial results from the SEC’s Regulation by Enforcement policy.
— John E Deaton (@JohnEDeaton1) January 22, 2023
Given that Congress has issued no regulatory guidance for cryptocurrency yet, the United States Securities and Exchange Commission (SEC) has been all out to achieve regulations through enforcement.
Accordingly, the Gary Gensler-led SEC has launched attacks on several crypto projects, alleging that their native tokens are unregistered securities. While the securities watchdog defeated LBRYcom in the LBC lawsuit in 2022, the XRP lawsuit which has lasted for over two years is still underway.
Just like most crypto proponents including the U.S Congressional candidate January Walker, Hoskinson wants Ripple to win as he understands a victory for the SEC would be catastrophic for the crypto industry.
Related: XRP Lawsuit: John Deaton States Why SEC Motion for Summary Judgment Would Be Denied
Recently, the SEC also charged both Gemini and Genesis Trading for offering unregistered security products as earlier predicted by John Deaton. For these reasons, he asserted that “the industry must come together to help fight the SEC’s enforcement-only policy.”
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