Ethereum (ETH) co-founder Vitalik Buterin criticized U.S. cryptocurrency regulation during a recent interaction on Warpcast. On June 28, Buterin argued that the system favors projects with vague promises over those offering clear returns and rights.
Historically, Buterin has proposed regulations to enhance DeFi platform safety, such as leverage limits and transparency about audits. Jason from the Ethereum Foundation echoed these views and invited Buterin to share his current thoughts.
Buterin highlighted the issue of “anarcho-tyranny,” where clear projects face stricter regulations, labeling them as securities. He called for a regulatory shift to support tokens with transparent long-term value.
This comes after a judge dismissed the SEC’s claim that secondary sales of Binance’s BNB token are securities. The ruling aligns with the SEC vs. Ripple case, emphasizing the economic reality of transactions.
For the crypto industry to thrive, Buterin stresses the need for genuine collaboration between regulators and the industry. This would create a safer and more transparent environment for token issuance.
