• Cardano co-founder praises the FIT 21 invoice for aligning decentralization with group governance.
• The FIT 21 invoice proposes CFTC oversight of decentralized property and SEC regulation of centralized property.
• Cardano is effectively positioned below the brand new FIT 21 invoice and outperforms decentralization requirements in comparison with its opponents.

Cardano Ghost Fund DAO co-founder Chris O. commented on the just lately launched FIT 21 invoice, calling it an essential growth for the trade. Chatting with his 11.5KX followers, Chris famous that the invoice's minimal necessities for cryptocurrencies to be labeled as commodities or securities match “the Cardano story.”

He added that the invoice helps Cardano's values ​​of decentralization and group governance. Quote:

“No single group or related individual controls greater than 20% of the provision. What does this imply? So it’s a narrative of decentralization and group governance, cycles. That is the story of Cardano!! Crypto I really like currencies. A very powerful issues all the time occur when an sudden underdog seems.”

Below the FIT 21 Act, decentralized digital property utilizing blockchain will qualify as commodities. Due to this fact, the Commodity Futures Buying and selling Fee (CFTC) will regulate such property. Based on the invoice, blockchain will qualify as decentralized if its management is just not one-sided. Moreover, no issuer or associated entity could maintain greater than 20% of the property or their voting energy.

However, if the blockchain is practical however not decentralized, the SEC would regulate the digital property as securities. Nevertheless, the invoice caps annual gross sales, restricts entry for non-accredited buyers, and offers exceptions for sure digital property that meet sure disclosure and compliance requirements.

The SEC and CFTC are additionally directed to collectively situation guidelines to make clear phrases and stop duplicative regulation of dual-registered exchanges.

Cardano, which already meets these decentralization standards, seems to be in a good place below this new framework: 19% of the funds shall be allotted to insiders and an ecosystem fund, whereas the remaining 81% shall be reserved for public participation, based on Messari knowledge. In distinction, different blockchains similar to Binance and Solana could have to deal with important decentralization obstacles.

The FIT 21 invoice marks an essential step in the direction of establishing a transparent regulatory framework for digital property. This laws highlights the significance of decentralization and regulation within the ever-growing blockchain expertise subject.