Vitalik Buterin, co-founder of Ethereum (CRYPTO: ETH), recently expressed his concerns over the current state of cryptocurrency regulation, particularly in the United States.
What Happened: While responding to a user on decentralized social network, Warpast, Buterin criticized the “anarcho-tyranny” of current cryptocurrency regulations. He argued that companies offering vague promises of potential returns are allowed to operate freely, while those providing clear explanations of returns and customer rights are penalized for being “a security”.
“The incentive gradient that this “anarcho-tyranny” creates ends up worse for the space than either plain anarchy or plain tyranny,” the cryptocurrency technologist remarked.
While Buterin did not outright target any project, his comments appeared to be directed at memecoins, particularly those launched by celebrities. He’d previously questioned the motive behind these endeavors.
Buterin added that he would prefer the industry to develop in a direction where launching a coin without a long-term aim welcomes more scrutiny, while projects with a clear long-term vision are encouraged.
Why It Matters: Buterin’s comments come in the wake of a lawsuit filed by the SEC against ConsenSys, a blockchain software company, for alleged violations of federal securities laws. The SEC claims that ConsenSys failed to register as a broker and did not register the offer and sale of securities, leading to substantial investor protection concerns.
Interestingly, the SEC recently closed an investigation into whether Ether is a security, marking a significant win for the cryptocurrency.
The SEC’s decision comes after it cleared asset managers to launch spot exchange-traded funds tracking the spot price of Ether in May.
Price Action: At the time of writing, SOL was exchanging hands at $3,491.97, rising 3.7% in the last 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.
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