Regulation
Ethereum Co-Creator Vitalik Buterin Slams ‘Anarchic Tyranny’ of Cryptocurrency Regulations, Says ‘Useless’ Projects Are Safe While Those With Long-Term History Are Punished
Vitalik Buterinco-founder of Ethereum ETH/USD, recently expressed concerns about the current state of cryptocurrency regulation, particularly in the United States.
What happened: In responding to a user on the decentralized social network, Warpast, Buterin critical “The anarcho-tyranny” of current regulations on cryptocurrencies. He argued that companies 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 because they are “a security.”
“The incentive gradient created by this ‘anarcho-tyranny’ is proving worse for the space than simple anarchy or simple tyranny,” the cryptocurrency technologist noted.
While Buterin did not directly target any project, his comments appeared to be aimed at memecoins, particularly those launched by celebrities. questioned the motive behind these efforts.
Buterin added that he would prefer the industry to develop in a direction where launching a coin without a long-term goal attracts greater scrutiny, while projects with a clear long-term vision are encouraged.
Why is this important: Buterin’s comments come in the following a lawsuit filed by the SEC against ConsenSys, a blockchain software company, for alleged violations of federal securities laws. The SEC alleges that ConsenSys failed to register as a broker-dealer and failed to record the offer and sale of securities, leading to significant investor protection concerns.
Interestingly, the SEC recently closed an investigation into if Ether is a security, marking a significant victory for the cryptocurrency.
The SEC’s decision comes after allowing asset managers to launch spot exchange-traded funds tracking the Ether spot price in May.
Price action: At the time of writing, SOL was trading at $3,491.97, up 3.7% in the past 24 hours, according to data from Benzinga Pro.
Photo by Alexey Smyshlyaev on Shutterstock.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.