Ethereum co-founder Vitalik Buterin has slammed the United States over its takes on defining and regulating cryptocurrencies as securities. Crypto journalist Colin Wu shared the information on W Blockchain X post, noting that Buterin is concerned about the current regulatory environment.
Buterin’s criticism is directed at the U.S. Securities and Exchange Commission (SEC) and its expansive definition of what is considered a security in the digital sphere. He pointed out that the given regulatory environment promotes the development of virtually useless projects and various empty promises of the possible returns. As stated by Buterin, the existing environment does almost nothing to encourage proper innovation and real value within the sphere of cryptocurrencies.
Buterin’s main problem with the SEC’s approach is that it leads to projects that are not very clear with the benefits they provide and make only speculative promises rather than real developments that can be advantageous to the digital industry. He noted that to qualify the promise of returns and rights as securities, there has to be a shift in the law. This shift should be towards the fact that the tokens being issued should be backed up by some form of economic activity.
Vitalik Buterin Urges Honest Crypto-Regulation
Buterin urges the regulators and the industry to work together honestly to realize this. He estimates that the regulatory environment could be made slightly less oppressive, while still allowing for the stifering of frauds that are unlikely to be of much use. Thus, according to him, it is high time to make such a shift for the further development of the cryptocurrency market.
Buterin made the remarks during the week when the cryptocurrency market is already under great pressure from the regulators across the globe. Given the fact that the digital asset market is still relatively new, governments and other regulatory authorities are still seeking the most suitable ways of managing it.
The crypto community will be waiting for the response of the regulators to Buterin’s suggestions to adopt change. Nevertheless, his words cannot but contribute to the existing discussion about the further development of the cryptocurrency regulation in the United States and the rest of the world.