Hoskinson Advocates for Clearer Commodity Classification in US Crypto Regulation

Cardano founder Charles Hoskinson has expressed his views on how digital assets should be regulated in the US. According to him, assets like ADA and XRP are truly commodities and not securities. He argues that there is a fundamental problem with treating all digital assets as commodities, which is why the CLARITY Act failed to advance in the Senate.

Hoskinson believes that lawmakers should first establish which digital assets genuinely qualify as commodities and which belong in a separate category of digital securities. In his opinion, the SEC has a larger workforce and broader tools for disclosure and market oversight, while the CFTC traditionally operates as a principles-based commodities regulator.

The Cardano founder specifically identifies Bitcoin, Cardano, and XRP as examples of crypto assets that he considers 'truly commodities.' His comments coincide with a significant regulatory development in the US. The SEC and CFTC jointly issued an interpretation outlining how different crypto assets could be classified, including as digital commodities, digital securities, or stablecoins.