Regulation
Ethereum Founder Warns About Crypto Policy
Ethereum founder Vitalik Buterin wrote a long article We reflect on how crypto has gained popularity in recent years. Particularly in the political spectrum, where various jurisdictions around the world are considering bills to regulate different blockchain-related activities. Notable examples include the regulation of crypto asset markets [MiCA] in the EU, the UK’s efforts to regulate stablecoins, and the mix of legislation and attempted regulation by SEC enforcement in the US.
Buterin considers most of these bills reasonable, though some worry that governments will overstep their authority, such as by treating almost all coins as securities or banning self-managed wallets. Because of these fears, some in the crypto community have seen an opportunity to become more politically active, favoring political parties and candidates based almost entirely on their stance on cryptocurrencies.
But this trend, Buterin warns, carries risks of running counter to the values that crypto or decentralization espouses. Instead of overtly focusing on the centrality of “money” or tokens, the focus should be on the broader principles of freedom and decentralization that underpin the crypto movement.
The Ethereum founder referred to the cypherpunk movement of the early 2000s, which emphasized free and open technology as a way to protect and enhance individual freedoms. At the time, the main battle was against restrictive copyright legislation, and to combat it, there were torrent networks, encryption, and anonymization of the Internet.
“A lesson learned early on about the importance of decentralization,” said the Ethereum founder. He cited the famous example of how centrally controlled networks like Napster were easily shut down, while pure P2P networks like Gnutella and Tor continued to hold strong.
With the advent of Bitcoin, internet payments have undergone a huge transformation, bypassing restrictive copyright laws.
The point of all this is to contextualize the mindset that created blockchains and cryptocurrencies in the first place: freedom is important, decentralized networks are effective at protecting freedom, and money is an important area where such networks can be applied — but it is one important area among many.
Message from Ethereum Founder to Crypto Community
THE Ethereum The founder stressed that support for cryptography should not be limited to a single aspect, but should align with broader technological freedoms, such as privacy of communications, digital identity and thought, and access to information. Therefore, the crypto community should evaluate politicians not only on their stance on cryptography, but also on their broader commitment to these freedoms.
In doing so, they can ensure that their support is based on principles that will remain relevant and protect individual freedoms in the long term.