Regulation
US cryptocurrency regulations favor ‘useless’ tokens
Ethereum co-founder Vitalik Buterin has criticized the US regulatory approach to cryptocurrencies, particularly the continued classification of utility tokens as securities.
Buterin argues that this approach discourages meaningful crypto projects and promotes the creation of “useless and vague” tokens.
Buterin advocates for balanced crypto regulation to promote growth
Ethereum Co-Founder believes that the current regulatory regime has cornered well-meaning cryptocurrency developers. Buterin says this approach is damaging the cryptocurrency industry and could eventually lead to anarchy or tyranny.
“If you do something useless, or something where you ask people to give you money in exchange for vague references to potential returns, at best you are free and clear, but if you try to give your customers a clear story about where the returns are coming from and promise what rights they have, then you are screwed because you are “a security” said Buterin.
Instead, he envisions a future in which issuing a token without providing a clear long-term story of its economic value is riskier, while projects that provide such a story and follow best practices are safe. However, achieving this requires “a good faith commitment from regulators and the industry.”
“I would much prefer that we move towards the opposite situation, where issuing a token _without_ giving_ a clear long-term explanation as to why its economic value will maintain or increase is the riskiest thing, and if you give such a long-term explanation and follow basic best practices, then you are safe,” Buterin said. REMARK.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
Buterin’s position resonates with many industry leaders who have spoken out against the U.S. government’s handling of the emerging crypto sector. Supporters are pushing for regulations tailored to the unique nature of crypto and decentralized platforms. They believe this approach is crucial to protect investors and foster technological growth without imposing excessive restrictions.
However, the SEC led by Gary Gensler has consistently criticized industry players for not adhering to existing rules. securities laws. For this reason, the financial regulator has declared major crypto assets as Solana and Cardano securities. Additionally, he has filed lawsuits against major crypto companies such as Coinbase, Binance, and Kraken for their crypto products that allegedly violate local laws.
Learn more: Who is Gary Gensler? Everything you need to know about the president of the SEC
These issues have made crypto an important political topic in the upcoming November elections. Crypto companies donate to crypto-related political associations to support crypto-aligned candidates. These efforts yielded significant results, with former President Donald Trump’s support for crypto strengthening his position in the election.
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