Bitcoin

Vitalik Buterin, co-founder of <a href="https://coinmarketcap.com/currencies/ethereum/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Ethereum</a>, recently voiced his frustration with the current state of cryptocurrency regulation, highlighting a paradoxical situation faced by developers.
On the social media platform Warpcast, Buterin criticized regulatory efforts in the US, stating:
“The main challenge with crypto regulation (esp in the US) has always been this phenomenon where if you do something useless, or something where you’re asking people to give you money in exchange for vague references to potential returns at best, you are free and clear, but if you try to give your customers a clear story of where returns come from, and promises about what rights they have, then you’re screwed because you’re ‘a security.’
The incentive gradient that this ‘anarcho-tyranny’ creates ends up worse for the space than either plain anarchy or plain tyranny.”
He lamented the prevalence of bad actors and scams in the unregulated space, advocating for measures like limiting leverage, mandatory audits, transparency, and knowledge tests to weed out dubious projects.
While the feasibility of implementing cryptocurrency knowledge tests remains uncertain, Buterin emphasized the need for policies that address leverage limits and transparency requirements.
He criticized the US regulatory approach as inconsistent and opaque, suggesting a preference for regulations that incentivize clear, long-term project viability:
READ MORE: <a href="https://www.cryptointelligence.co.uk/bitcoin-etfs-see-31m-inflows-reversing-seven-day-outflows/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin ETFs See $31M Inflows, Reversing Seven-Day Outflows</a>
“I would much rather see us move to the opposite situation, where issuing a token without giving a clear long-term story for why it will maintain or increase in economic value is the riskier thing.”
However, Buterin acknowledged that achieving effective regulations requires genuine cooperation between regulators and the cryptocurrency industry:
“Actually getting to this will require good-faith engagement, both from regulators and from industry.”
In conclusion, Buterin’s critique underscores the challenges posed by current regulatory frameworks, advocating for reforms that promote transparency and long-term sustainability in cryptocurrency projects.
He argues that clear regulatory guidelines could mitigate risks associated with speculative investments and foster a more stable environment for innovation in the crypto space.
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Vitalik Buterin Advocates Clearer Crypto Regulations Amid Regulatory Frustration

Crypto Intelligence

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