- Polkadot and Web3 became the center of discussion in Daniel Schoenberger’s presentation to lawmakers.
- According to him, the current US regulatory framework cripples Web3 innovation.
At a recent hearing to discuss “The Future of Digital Assets: Measuring the Regulatory Gaps in the Digital Asset Markets,” Daniel Schoenberger, Chief Legal Officer at Web3 Foundation, was invited by the US lawmakers to make a presentation on the Polkadot network and the Web3 vision.
In his submission, Schoenberger stated that Web3 aims to return data to users and revolutionize the internet into a more secure, decentralized, and user-centric one.
Earlier today, @Web3foundation's @d_schoenberger presented the Polkadot network and Web3 vision before the House @FinancialCmte & @HouseAgGOP.
Check the Foundation's thread and blog to learn more about the hearing and the importance of a comprehensive legislative and regulatory… https://t.co/zUdR4hqoUS
— Polkadot (@Polkadot) May 10, 2023
According to him, Web3 has the potential to massively transform the Internet with much focus on efficiency, innovation, and connectivity. Generally, Web3 can offer transparent and tamper-proof records for land ownership, facilitate decentralized identities, manage digital intellectual properties, etc. MeWe, a social network with over 20 million members which focuses on privacy highlights the importance of decentralized social media.
MeWe recently announced its adoption of the Decentralized Social Network Protocol (DSNP) from Project Liberty, created by Frank McCourt, former owner of the Los Angeles Dodgers baseball team. DSNP is an open-source project that provides the fundamental infrastructure of a social network but is not tied to a specific company, giving users greater control over their data. The technology operates on the Polkadot network, showcasing the versatility and potential of Polkadot in facilitating decentralized applications and services.
Polkadot Takes the Center Stage
In the presentation, Schoenberger mentioned Polkadot as the next-generation blockchain protocol that aims to unite blockchains to share security, interoperability, and scalability.
The Web3 Foundation CLO further explained to the lawmakers that the industry has the potential for secure and decentralized solutions for different applications.
It can offer transparent and tamper-proof records for land ownership, revolutionize the management of digital assets in virtual reality and metaverse, and facilitate decentralized identities, and management of digital intellectual property, including proof of ownership and tracking. Web3’s versatility highlights its transformative capabilities across numerous use cases.
After highlighting the use cases of Web3 and Polkadot, Schoenberger took them through some of the regulatory processes his Foundation undertook regarding the classification of the native currency of Polkadot, DOT. He explained that DOT was initially sold as a security as required by the U.S. federal securities laws. Later, Web3 Foundation had a three-year engagement with SEC staff for compliance.
While doing that, the Foundation was also seeking validation for the token that it is a coordinating software. According to him, the asset was not designed as a speculative investment product, but to secure the network, support governance, and obtain parachain slots.
The presentation also states that the current regulatory approach poses a big challenge to Web3 innovation. Speaking on this, Schoenberger mentioned that the US lacks a comprehensive legislative framework for digital assets and blockchain technology. Also, Agencies tend to impose laws and regulations not designed for these emerging technologies.
Meanwhile, the Polkadot and the Web3 industry offer a huge benefit to the U.S. and can revolutionize the global economy. With the current regulatory structure, the benefits of these new technologies would not be fully enjoyed by the country. According to him, the US may even lose its leadership position in the development of blockchain technology.
As of the time of writing, Polkadot’s nomination pools had surpassed 4 million DOT in total stake with over 10,000 members and 122 total pools.
