Cardano’s founder, Charles Hoskinson, has recently expressed an optimistic outlook for the future of the proof-of-stake blockchain platform, claiming that it could quickly ascend to the top of the cryptocurrencies list. In a recent video, Hoskinson discussed “Cardano Summer” and the potential for its native token, ADA, to surpass the likes of Bitcoin, Ethereum, and other cryptocurrencies due to a series of updates and proposals set to be released in the coming weeks.
One notable update is the CIP-1694 proposal, which seeks to revolutionize Cardano’s on-chain governance infrastructure and turn the network into a genuinely decentralized government. The proposal is expected to be incorporated into Voltaire’s upcoming update, allowing any user to submit a governance action.
Simultaneously, Hoskinson discussed Cardano’s ongoing efforts to measure and quantify decentralization using metrics such as the Genie and Nakamoto coefficients. These metrics could provide precious insights into Cardano’s level of decentralization and possibly be adopted by major regulatory bodies worldwide. By using these indicators to evaluate decentralization, policymakers might develop informed regulations to differentiate between cryptocurrencies based on their decentralization, categorizing them as either commodities or protocols.
Additionally, Hoskinson addressed the current regulatory turmoil and shared how the development team is approaching the issue. He stressed the importance of a more nuanced and optimized regulatory framework that could be cultivated through adopting decentralization metrics like the Genie and Nakamoto coefficients. This statement follows the US Securities and Exchange Commission’s ongoing aggressive crackdown on the crypto industry after the unfortunate collapse of cryptocurrency exchange FTX.
This year, the agency has thus far taken action against crypto exchanges like Bittrex and Gemini, as well as crypto lender Genesis and several individuals accused of manipulating crypto assets. Most recently, the SEC sent a “Wells notice” to Coinbase, warning of potential legal action against some of the exchange’s listed digital assets, staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
Moreover, the SEC has been grappling with the question of whether certain cryptocurrencies are securities or not. Cardano advocate and founder of Crypto Capital Venture, Dan Gambardello, believes it is unlikely that the SEC will deem ADA a security. He cites two reasons – firstly, the ICO for Cardano occurred in Japan and was not accessible to US investors, and secondly, a recent court ruling found that secondary sales of LBC tokens from LBRY were not considered securities, setting a crucial precedent for ADA.