The founder of Cardano said that the proposed US financial innovation law will allow leading cryptocurrencies to rise above all-time highs.
Cardano developer Charles Hoskinson believes that if the bill gets the green light from the US government, then institutional investors will be able to invest huge amounts in cryptocurrency markets. This will help mitigate certain regulatory risks associated with investing in cryptocurrencies:
“Since joining the crypto space, I have been through seven bear markets and this current one is no different. It could be 18 months, it could be two years, it could be over by the end of the year, who knows? But if America passes a financial innovation law, we will probably see a mega-bull market because a huge amount of institutional money will come in, and also all the regulatory risk with cryptocurrencies will disappear.”
The founder of the Cardano cryptocurrency praised the new financial innovation law, which was proposed by Republican Senator Cynthia Lummis of Wyoming and Democratic Senator Kirsten Gillibrand. The bill aims to create a regulatory framework for cryptocurrencies. The US government has recently stepped up efforts to develop a detailed cryptocurrency bill that actively aims to manage the activities of the crypto sector with particular care and precision.
According to Hoskinson, excessive regulatory oversight could harm this sector of the economy and ultimately stifle the nascent crypto industry.
“If people like Gensler are empowered, we could see a mega bear market as there will be a huge amount of litigation and all these poor entrepreneurs will just be forced out of business by an oppressive government,” the Cardano founder said.
Senators Cynthia Lummis and Kirsten Gillibrand have announced that legislation to regulate the crypto industry is likely to be passed in 2023. Legislators noted that there is only a small chance that the project will be considered before the end of 2022.
