Hoskinson Calls for US Rethink on Crypto Classification

Cardano founder Charles Hoskinson has called for the United States to rethink its classification of digital assets, arguing that ADA and XRP should be considered commodities rather than securities. Speaking on September 17, Hoskinson pointed out that the current approach groups various digital assets as commodities and puts the CFTC at the center of regulation.

Hoskinson stressed that the fundamental problem is that securities and commodities have fundamentally different characteristics and should not be subject to the same regulatory framework. He noted that the SEC has broad authority and staffing for disclosures and market surveillance, while the CFTC is a principles-based commodities regulator.

The remarks tie in with changes in U.S. regulatory interpretation, including a joint interpretation by the SEC and CFTC earlier this year that set out standards to classify each cryptocurrency into categories such as digital commodities, digital securities, and stablecoins. Cardano and XRP were included in the digital commodities category.

Hoskinson also emphasized the limits of U.S.-centric regulation, arguing that a regulatory decision in one country affects participants and operators in other regions. He proposed a mutual recognition system with other jurisdictions to link different regulatory frameworks.