Cardano blockchain and the new crypto laws – The Cryptonomist

Renowned blockchain developer and creator of Cardano (ADA), Charles Hoskinsonshared his views on the recent regulatory actions against the cryptocurrency industry.

Specifically, the occasion for Hoskinson’s remarks was the introduction of a Senate of Illinois the bill called “Digital Property Protection and Law Enforcement Act,” which has already been called “the most useless state law”.

It is worth recalling that Cardano (ADA) is a blockchain based on one Proof-of-Stake consensus mechanism and ADA is its native cryptocurrency. Ouroboros is Cardano’s PoS algorithm: uses much less power than Proof-of-Work, ensuring decentralization and scalability in a sustainable way.

Anti-crypto conspiracy? The words of the creator of the Cardano blockchain

As expected, Hoskinson voiced his opinion on the strict new cryptocurrency regulations from the Illinois Senate.

Specifically, when asked what the catalyst was for greater regulation of the cryptocurrency industry, the Cardano blockchain creator stated unequivocally that it was collapse of FTX.

“The moment it happened, I knew the whole industry was going through a very tough time.”

Hoskinson also agrees Kraken exchange entrepreneur Jesse Powellhis theory that regulators deliberately allowed harmful elements into the system, such as FTX or Three Arrows Capitalto grow and flourish.

According to Powell, such bad actors serve the regulators’ agenda by demonstrating the unreliability and danger of the cryptocurrency industry, allowing it to become huge. When they explode, they give an excuse tighten the regulationhe summarized.

Hoskinson also noted that this statement began to sound plausible when fair warning was given to many companies that exploded months or years before recent events.

At the same time, readers were quick to remind the founder of his skeptical comments about the conspiracy in SEC case against Rippleand congratulates him for finally realizing what reality was.

The new crypto bill: what it says

Reportedly, the Illinois Senate Bill SB 1887 would eliminate blockchain node operators, miners and validators, waste judicial resources and confuse existing law in an effort to protect Illinois consumers.

First, it is noted that this bill is a surprising turnaround for a state that was previously pro-innovation. Instead, this is now perhaps “the most useless state law” related to crypto and blockchain ever.

A shift that many were quick to call “shocking”, as Drew Hinkes did on his Twitter profile. Specifically, the new law focuses on consumer protectionwhich is a fair and remarkably important factor.

However, the way it seeks to protect consumers is to require node operators, miners and validators to do impossible things, or things that create new criminal and civil liabilities for themselves in return for fines and/or fees.

In fact, the bill would allow a court, upon receipt of an order from the attorney general or attorney general, to order any blockchain transaction suitable for digital property or execution of a smart contract and require a blockchain network.

Therefore, anyone processing a blockchain transaction originating in this state at any time after the effective date of this Act shall process a court order blockchain transaction without the need for the digital property private key or smart contract.

On the other hand, a blockchain operator who has mined, validated or otherwise participated in the processing of a blockchain transaction on the blockchain network that originated in this state after the effective date of this act shall be liable to this state for a fracture of the joint.

More news about Cardano: Djed algorithmic stablecoin launched on the blockchain

Since the collapse of the algorithmic stablecoin Terra (LUNA) by mid-2022, many crypto users have expressed aversion to this particular asset class.

In fact, the market for algorithmic stablecoins fell tenfold from the all-time high reached before Terra’s failure. However, this has not stopped Cardano’s developers from launching the ecosystem’s overcollateralized stablecoin: Djed (DJED).

Available on Cardano’s mainnet, it is pegged to the US dollar and backed by Cardano’s native currency, ADA, and uses SHEN token as reserve currency.

According to the announcement, the new token, in development for over a year, recently completed a security audit.

DJED is a product of Cotia developer of DeFi (Decentralized Finance) Solutions on the Cardano blockchain, as a tool for new opportunities in DeFi and payment.

Among the latest updates to the Cardano network, Charles Hoskinson reported on January 12 that the ecosystem will expand through custom sidechains.

But on January 23, due to an anomaly, 50% of the Cardano nodes disconnected and had to restart, causing a network outage. This happened just a week before the launch of the new algorithmic stablecoin.

In early 2023, Bloomberg reported that the risk assessment firm Moody’s Corporation is developing a scoring system for stablecoins, which will include an initial analysis for up to twenty digital assets.