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The Web3 Foundation Testified Before the US House of Representatives on Digital Asset Regulation | By Web3 Foundation Team | Web3 Foundation | May, 2023

In a landmark occasion, Daniel Schoenberger, Chief Authorized Officer of the Web3 Basis, was invited to current Polkadot Community and the Web3 imaginative and prescient earlier than the US Home of Representatives Home Monetary Companies Subcommittee on Digital Property, Monetary Expertise and Inclusion and the Home Agriculture Subcommittee . on commodity markets, digital belongings and rural growth. in a listening to titled “The Way forward for Digital Property: Bridging the Regulatory Gaps in Digital Asset Markets,” Schoenberger, who has an in depth background in rising applied sciences and legislation, emphasised Web3’s potential to revolutionize the Web and ship unprecedented effectivity, innovation and connectivity.

Schoenberger highlighted that the aim of Web3 is to return management of information to customers, making the Web extra decentralized, safe, and user-centered. He launched Polkadot to lawmakers as a next-generation blockchain protocol that unifies an ecosystem of purpose-built blockchains, enabling them to work collectively and share safety, interoperability, and scalability.

Schoenberger highlighted the advantages of Web3 applied sciences that may present safer and clear social media apps, streamlined provide chains and video gaming experiences.

Briefly, Web3 holds huge potential for safe and decentralized options in quite a lot of purposes corresponding to land registration and property rights administration for each the bodily and digital worlds. It might supply a clear and tamper-proof report for land possession, revolutionize the administration of digital belongings in digital actuality and the metaverse, and facilitate the administration of digital mental property, together with decentralized identification, proof of possession and monitoring can present. The flexibility of Web3 highlights its transformative capabilities throughout a number of use circumstances.

A typical use case that highlights the significance of decentralized social media is MeWe, a social community with 20 million members that focuses on consumer privateness. MeWe not too long ago introduced the adoption of the decentralized social community protocol (DSNP) from Challenge Liberty, created by Frank McCourt, former proprietor of the Los Angeles Dodgers baseball crew. DSNP is an open-source challenge that gives the social community’s infrastructure however isn’t tied to any particular firm, giving customers extra management over their information. The expertise operates on the Polkadot community, demonstrating Polkadot’s versatility and potential in facilitating decentralized purposes and providers.

In his oral and written testimony, Schoenberger detailed the regulatory course of undertaken by the Web3 Basis concerning the classification of Dot, the native forex of the Polkadot community. As he identified, DOT was initially bought as a safety in compliance with US federal securities legal guidelines. Nevertheless, it was designed to safe the community, help governance, and procure parachain slots, not as a speculative funding automobile. The Web3 Basis has been engaged with SEC employees for greater than three years, pursuing compliance and searching for verification that the DOT is coordinating software, Schoenberger additionally mentioned the method of launch and decentralization by which management of the Polkadot community was handed over to the group on each a technical and governance stage, and advised that Congress set up a course of to reclassify the token over time.

The present regulatory strategy has stifled innovation within the Web3 sector. The US faces two main hurdles: the shortage of a complete legislative framework for digital belongings and blockchain expertise, and the trouble to implement legal guidelines and laws that aren’t particularly designed for this rising area. Schoenberger urged the event of a balanced, honest and accountable legislative and regulatory framework to handle these challenges.

With the potential to revolutionize the worldwide economic system and every day life, Web3 expertise and the Polkadot community present immense advantages to the US and the world. Nevertheless, with no robust regulatory framework consistent with the expertise, the US could not absolutely reap the advantages and will lose its management place within the growth of blockchain expertise.

For extra on Schoenberger’s full testimony, you possibly can watch the listening to Here,

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