Cardano Founder Calls for New Digital Securities Category

Regulatory experts have welcomed the recent harmonization of guidelines by the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which aims to clarify oversight on cryptocurrencies and tokenized real-world assets (RWAs).

However, Charles Hoskinson, founder of Cardano (ADA) and CEO of Input Output (IO), believes that there are still significant challenges to be addressed. He suggests creating a new category focused specifically on RWAs to seamlessly integrate stablecoins and RWAs into the current US regulatory framework.

Hoskinson highlighted the limitations of existing US securities laws, which were established 93 years ago and have not been updated to accommodate digital assets. He recommends introducing a bespoke legal classification for RWAs that would allow the crypto industry to move beyond the constraints of outdated rules.