Regulation
Ethereum co-creator Vitalik Buterin criticizes the ‘anarchoid tyranny’ of cryptocurrency regulations, says ‘useless’ projects are safe while those with a long history are punished
Vitalik Buterinco-founder of Ethereal ETH/USD has recently expressed concerns about the current state of cryptocurrency regulation, particularly in the United States.
What happened: Replying to a user on the decentralized social network, Warpast, Buterin criticized the “anarcho-tyranny” of current cryptocurrency regulations. He argued that firms that offer vague promises of potential returns are allowed to operate freely, while those that provide clear explanations of returns and customer rights are penalized as “a security.”
“The incentive gradient that this ‘anarcho-tyranny’ creates ends up being worse for the space than either anarchy or tyranny,” the crypto technologist noted.
While Buterin did not directly target any projects, his comments appeared to be aimed at memecoins, particularly those launched by celebrities. He had previously he questioned the motive behind these initiatives.
Buterin added that he would prefer the industry to develop in a direction where coin launches without a long-term goal are subjected to more scrutiny, while projects with a clear long-term vision are encouraged.
Because matter: Buterin’s comments come in following a lawsuit filed by the SEC against ConsensoSysa blockchain software company, for alleged violations of federal securities laws. The SEC alleges that ConsenSys failed to register as a broker and failed to register the offering and sale of securities, which has led to significant investor protection concerns.
Interestingly, the SEC recently closed an investigation into if Ether is a title, marking a significant victory for the cryptocurrency.
The SEC’s decision comes after it authorized asset managers to launch spot exchange-traded funds that track the spot price of Ether in May.
Price Action:At the time of writing, SOL was trading at $3,491.97, up 3.7% in the last 24 hours, according to data from Benzinga Pro.
Photo by Alexey Smyshlyaev on Shutterstock.
Disclaimer: This content was produced partially with the help of Benzinga Neuro and has been reviewed and published by Benzinga’s editorial team.