Regulation
Vitalik Buterin criticizes US cryptocurrency regulations and calls for major reforms
Ethereum co-founder Vitalik Buterin did it slammed the United States on their positions regarding the definition and regulation of cryptocurrencies as securities. Cryptocurrency journalist Colin Wu shared the information in the W Blockchain X post, noting that Buterin is concerned about the current regulatory environment.
Buterin’s criticism is aimed at the US Securities and Exchange Commission (SEC) and its expansive definition of what is considered a security in the digital sphere. He emphasized that the current regulatory environment promotes the development of practically useless projects and various empty promises of possible returns. As stated by Buterin, the existing environment does almost nothing to encourage adequate innovation and real value in the cryptocurrency sphere.
Buterin’s main problem with the The SEC’s approach is that it leads to projects that are not very clear about the benefits they provide and only make speculative promises rather than real developments that can be beneficial to the digital industry. He noted that in order for the promise of returns and rights to qualify as securities, there must be a change in the law. This change should be towards the fact that the tokens issued should be backed by some form of economic activity.
Vitalik Buterin urges honest crypto regulation
Buterin urges regulators and industry to work together honestly to make this happen. He estimates that the regulatory environment it could be made slightly less oppressive, while still allowing fraud to be cracked down which is unlikely to be of much use. So, according to him, the time has come to make such a change for the further development of the cryptocurrency market.
Buterin made these remarks during the week that the cryptocurrency market is already under intense pressure from regulators around the world. Since the digital asset market is still relatively new, governments and other regulators are still figuring out how to best manage it.
The crypto community will await regulators’ response to Buterin’s suggestions to adopt the change. However, his words can only contribute to the ongoing discussion on the further development of cryptocurrency regulation in the United States and around the world.