Cardano (ADA) Founder Criticizes Biden’s Proposed Repeal of SEC Custody Law: A Threat to Crypto?

• Cardano (ADA) creator Charles Hoskinson criticizes President Joe Biden’s stance on a resolution that could weaken the U.S. Securities and Exchange Commission (SEC).
• Biden has stated he would veto H.J. Resolution 109 if passed, a move Hoskinson dismisses as “noise and garbage”.
• The resolution, proposed in February by Nebraska Representative Mike Flood, has bipartisan support.

Cardano’s Charles Hoskinson takes aim at President Biden’s stance on a resolution that could impact the SEC’s ability to regulate the crypto market.

Biden’s Veto Threat on H.J. Resolution 109

President Biden has recently expressed his intention to veto H.J. Resolution 109 if it were to pass. This resolution, which has bipartisan support, could potentially weaken the SEC’s ability to regulate the crypto market. Charles Hoskinson, the creator of Cardano (ADA), has criticized this stance, dismissing it as “noise and garbage”.

Hoskinson’s Critique of Biden’s Stance

In a recent video update to his 315,000 YouTube subscribers, Hoskinson voiced his disagreement with Biden’s stance. He argued that while regulation by enforcement is one thing, it’s another entirely to veto a resolution that has been carefully considered and proposed by the legislative branch. Hoskinson asserts that such a veto would stifle innovation and progress in the crypto industry.

The Implications of H.J. Resolution 109

The Biden Administration has argued that the passage of H.J. Resolution 109 would disrupt the SEC’s ability to protect investors within the crypto markets. This is because the resolution would invalidate SAB 121, which provides regulations for entities holding digital assets on behalf of others. The administration believes that limiting the SEC’s regulatory capabilities would introduce financial instability and market uncertainty.

Conclusion

The debate over H.J. Resolution 109 highlights the ongoing tension between the crypto industry and regulatory bodies. As the industry continues to grow and evolve, the need for clear, effective regulation becomes increasingly important. However, striking a balance between protecting investors and fostering innovation remains a complex challenge.