Cardano Foundation Responds to IOSCO Press Policy Recommendations on Digital Assets and Crypto Markets

Cardano Foundation Responds to IOSCO Press Policy Recommendations on Digital Assets and Crypto Markets

Crypto News – In a recent development, the Cardano Foundation has shared its response to the policy recommendations put forth by IOSCO Press, with a specific focus on matters pertaining to digital assets and cryptocurrency markets. The platform took to Twitter, a popular social media channel, to convey a concise overview of its reaction to the broader community. The following thread of tweets offers a comprehensive insight into the company’s stance on the issue.

Distinguishing Blockchain Infrastructures and Applications

Cardano’s initial reaction highlights the importance of establishing clear distinctions between various blockchain infrastructures and their diverse applications. The company expresses agreement with the report’s activities-based approach. However, it emphasizes the necessity for an additional, more detailed categorization that centers around operations. According to Cardano, this refined categorization would significantly enhance clarity, benefiting stakeholders across the board.

Appreciation for Outcome-Driven Rules and Innovation Challenges

The platform also expresses appreciation for the report’s outcome-driven and functional regulatory rules. Yet, it draws attention to the rapid pace of innovation within the blockchain realm, which renders overly rigid rules obsolete in short order. Cardano Foundation advocates for an agile, risk-based approach that embraces flexibility. This approach, it argues, would effectively mitigate potential risks while maintaining a balanced and adaptable regulatory agenda.

Alignment with IOSCO’s Principle and Expanding Risk Perspective

Cardano acknowledges its alignment with IOSCO’s core principle that emphasizes “same activity, same risk, same outcome.” However, the company raises a critical point about the prevalent tendency to view the blockchain sector primarily through a financial activity-related risk lens. While acknowledging the presence of financial risks, Cardano Foundation underscores that the opportunities within the blockchain sphere extend well beyond economic use cases.

Regulation as an Enabler of Innovation

In concluding its response, the cryptocurrency firm reiterates that effective regulation should function as a facilitator rather than a hindrance to innovation. The Cardano Foundation underscores the importance of regulatory frameworks that provide supportive guidance, fostering an environment in which innovation can thrive unhindered.

The Cardano Foundation’s reaction to the IOSCO Press policy recommendations reflects a nuanced understanding of the challenges and opportunities within the evolving digital asset and crypto markets. As the blockchain sector continues to mature, the foundation advocates for regulatory approaches that are agile, risk-conscious, and innovation-friendly.