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Ethereum (EthereumCo-founder Vitalik Buterin has expressed his dissatisfaction with the way the United States is handling cryptocurrency regulation.
at recent days interaction At Warpcast, Buterin said he believes the current regulatory system encourages the creation of projects that make vague promises of returns with no real substance.
Buterin also argued that if returns and rights to cryptocurrencies are classified as securities, the focus should shift toward developing tokens that maintain or increase economic value.
In addition, the Ethereum co-founder emphasized that this transformation requires sincere cooperation from both regulators and the crypto industry.
It all started on June 28, when an Ethereum Foundation member, Jason, on Warpcast, posted a tweet mirroring a tweet Buterin posted in 2022 during the discussion on front-end regulation proposed by Sam Bankman-Fried.
In the tweet, Buterin Several regulations have been proposed on the front end of decentralized finance (defi) platforms that could help reduce the number of opportunists in the industry and enhance safety.
These restrictions included limits on leverage, transparency about audits or other security checks on contract code, and restricted use of knowledge-based tests rather than minimum net worth rules.
While sharing the post, Jason stated that he still believes in the value of the regulations proposed by Buterin and invited the Ethereum co-founder to share his current thoughts on the matter.
Jason also suggested the idea of creating a pop-up window showing details of the current pre-swap token economy, with links to Etherscan showing how major holders acquired their coins.
Responding to Jason on June 29, Buterin highlighted the fundamental issue of cryptocurrency regulation, especially in the US.
He noted that projects that make vague promises can operate freely, but those that provide clear information about returns and rights are often classified as securities and face stricter regulations. He referred to this as an “anarchic tyranny” that is hurting the crypto space.
The main challenge with cryptocurrency regulation (especially in the US) has always been this phenomenon where 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’re free and clear, but if you try… Giving your clients a clear story about where the returns come from, and promises about what rights they have, you’re in trouble because you’re a “security.”
Vitalik Buterin, co-founder of Ethereum
Buterin also wants to Organizational An environment where issuing a token without a clear long-term value proposition is riskier.
In his view, providing a long-term, transparent outlook and adhering to best practices would provide security for crypto tokens. He noted that achieving this requires real engagement from both regulators and the industry.
Buterin’s comments follow a US judge’s June 28 ban to reject SEC Claims Binance Secondary Sales BNP A symbol that qualifies as a security.
This ruling was influenced by the SEC v. Ripple case, where the economic reality of transactions was emphasized when applying the Howey test.
A judge has ruled that secondary sales of Binance Coin do not qualify as securities, marking a major win for crypto traders.
