In response to a call from Commissioner Hester M. Peirce and the U.S. Securities and Exchange Commission (SEC) Crypto Task Force, the Cardano Foundation has made a significant contribution to the SEC’s ongoing efforts to understand the evolving cryptocurrency landscape.
The foundation responsible for the ADA token submitted feedback to the SEC’s Crypto Task Force questionnaire, emphasizing the need for regulatory clarity that fosters innovation and global interoperability.
As the regulatory environment continues to develop, the Cardano Foundation advocates for several key principles to guide future frameworks. One primary suggestion is the establishment of a functional, risk-based taxonomy that avoids using decentralization as a legal criterion when determining whether a blockchain asset qualifies as a security under U.S. federal law.
Aligned with EU regulations
The foundation also calls for greater global interoperability, urging U.S. regulatory frameworks to align more closely with those of other jurisdictions, particularly the European Union’s Markets in Crypto-Assets Regulation (MiCAR). This alignment is seen as crucial for creating a cohesive and collaborative international regulatory environment.
Additionally, the Cardano Foundation emphasizes the importance of a technology-neutral approach to tokenization, which could enhance market efficiency and transparency across the crypto space. Finally, the foundation introduces a constructive perspective on outsourcing, proposing a proportionate, function-focused model for public, permissionless infrastructures like Cardano.
Through this engagement with the SEC, the Cardano Foundation aims to contribute to a regulatory framework that not only protects investors but also encourages the growth and development of cryptocurrency technologies.
Shogun Lin
