Ethereum CoFounder Vitalik Buterin Denounces US Cryptocurrency Regulation as Anarchistic Tyranny

Byadmin

Jul 1, 2024
Ethereum CoFounder Vitalik Buterin Denounces US Cryptocurrency Regulation as Anarchistic TyrannyEthereum CoFounder Vitalik Buterin Denounces US Cryptocurrency Regulation as Anarchistic Tyranny

Ethereum co-founder Vitalik Buterin has reiterated his concerns about cryptocurrency regulation, particularly in the United States.

In response to a question on Warpcast, a decentralized social media platform, Buterin highlighted the regulatory paradox he believes stifles growth and integrity in the industry.

He pointed out that the current regulatory framework in the US tends to allow projects with unclear prospects and ambiguous potential returns to operate relatively freely. Conversely, projects that provide transparent return information and clearly define investor rights are often classified as “securities” and subjected to stringent regulations.

Under Gary Gensler’s leadership, the SEC has initiated several lawsuits aiming to classify cryptocurrencies as securities. The commission’s latest action includes a lawsuit against Consensys, alleging that MetaMask wallet exchange and staking services violate securities laws.

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Buterin described the Securities and Exchange Commission’s position on cryptocurrencies as an “anarchic tyranny,” creating a structure with perverse incentives that, in his view, does more harm than good to the crypto space. He argued that this approach encourages the creation of “useless” products and services.

Buterin advocated for regulatory changes where issuing tokens without a clear, long-term value proposition should be considered riskier. In contrast, projects that provide transparent and reliable long-term plans and adhere to best practices should be protected. This approach, he believes, would foster innovation in valuable products.

Achieving this balance, according to Buterin, requires serious collaboration between regulators and the crypto industry. He consistently emphasized the importance of clear and fair regulations, asserting that the current landscape hinders innovation and fosters fraud.

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