Regulation
Vitalik Buterin Shares His Perspective on the Flaws of US Cryptocurrency Regulation
Co-founder of Ethereum (ETH) Vitalik Buterin has been a vocal critic of the current regulatory framework for cryptocurrencies in the United States, arguing that it unfairly targets cryptocurrencies as securities while allowing “useless things” with “vague potential” to operate unchecked.
Vitalik Buterin criticizes the US regulatory model for cryptocurrencies
Buterin’s remarks came in response to questions he was asked about regulation of the broader crypto industry on the Ethereum network. The investigation also addresses whether more measures are needed to reduce the number of opportunists, thereby making the industry safer.
According to Vitalik Buterin, the main problem with cryptocurrency regulation in the United States is that the system favors assets with unclear promises of potential returns over those with transparent and well-defined financial expectations.
He says, for example, that if a project presents vague potential returns without concrete plans, it often escapes regulatory scrutiny. projects Those that provide clear explanations of expected returns and customer rights are more likely to be classified as securities and subject to stricter regulation.
Buterin called this regulatory inconsistency “anarcho-tyranny.” He suggested that it creates an incentive structure that is unfavorable to the crypto space, rather than complete anarchy or strict tyranny. He argues that this framework prevents innovation and transparency within the industry.
The Ethereum co-founder has expressed his desire for a change in regulatory approach that would encourage transparency and long-term value in token issuance. He advocates for a system in which issuing tokens without a clear long-term plan to maintain or increase their economic value is considered riskier than having such a plan in place.
A call for regulatory reform
According to him, to achieve such change, genuine cooperation and good faith engagement between regulators and the crypto industry is needed.
Buterin said: “I would much prefer that we move to the opposite situation, where issuing a token _without_ giving_ a clear long-term story about why it will maintain or increase its economic value is the riskiest thing, and if you _give_ such a long-term story and follow basic best practices, then you are safe.”
Cryptocurrency industry analysts agree that Buterin’s comments underscore the need for a more balanced regulatory approachThis measure could reward transparency and long-term planning in the cryptocurrency ecosystem and the regulator should do more to encourage innovation.
The approval of Ethereum Spot ETF is a good place to start. The SEC’s reversal means the bar is moving in favor of cryptocurrencies, a trend that sets a precedent for other assets.
Learn more: Bitcoin (BTC): Will History Repeat Itself in July?