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Hoskinson implies that the FTX collapse has set the industry back at least two years.
Cardano founder Charles Hoskinson has agreed with Attorney John Deaton, saying he does not expect Congress to create clear rules for the crypto market until 2025.
Hoskinson made this known in response to FOX Business reporter Eleanor Terrett yesterday. According to the Cardano founder, he would have tapped 2023 as the year for sensible crypto regulation pre-FTX collapse.
“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,” Hoskinson wrote. “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
Recall that Deaton has continued to assert that the nascent market will not get clear rules in the US anytime soon. Most recently, the attorney representing thousands of XRP holders as a friend of the court tapped 2025 as the earliest window for legislative action on cryptocurrencies, daring Congress to prove him wrong. Consequently, the lawyer has said that the ruling in the US Securities and Exchange Commission case against Ripple will be the only clarity the industry gets in the next two years.
Notably, Binance chief strategy officer Patrick Hillman also weighed in on the matter, largely agreeing with Hoskinson. However, he also expressed a level of optimism, noting that some Congress members are working on crypto regulations and there are fewer bipartisan issues this session.
Agree with @IOHK_Charles here. 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. There are also VERY FEW potential bipartisan issues this session. We'll have to see, @EleanorTerrett
— Patrick Hillmann (@PRHillmann) January 23, 2023
As implied by Hoskinson and previously asserted by the Blockchain Association’s Ron Hammond, the FTX collapse has set the industry back. Notably, disgraced FTX founder Sam Bankman-Fried was a regular guest at Capitol Hill. According to Hammond, the collapse of his crypto empire and indications of fraud have eroded trust and pushed some lawmakers against making rules for the nascent market in fear of legitimizing the industry.
It is worth noting that Congress has also played host to Hoskinson. At the time, the Cardano founder championed algorithmic regulation with supervision from the SEC or Commodities Futures Trading Commission when anomalies are observed.
The lack of clear rules in the US has allowed the SEC to continue its campaign of regulation by enforcement, pushing businesses abroad.