In a new interview on Thinking Crypto, the CEO of the technology company behind the blockchain platform Cardano, Input Output Hong Kong (IOHK), says that current regulatory approaches do not work well with crypto assets.
The US needs to move to a functional regulation system instead of a definitional system. We’ve moved beyond the world that something’s a commodity and something’s the currency and something’s a security.
It needs to be regulated based on how it’s used. You need a different regulatory system and that doesn’t really map so well in the US because, usually, what we do is we create a regulatory body for an asset type: the CFTC handles commodities, derivatives as the Securities Exchange Commission handles securities…
We need to move to a system for regulation that has much better definitions of things. We don’t really have a good definition of virtual asset service provider in the United States. We don’t really have a definition of what is a utility token, versus a security token, these types of things. We need a better functional model and we need a better asset definitional model and they need to be applied together.”