Ethereum co-creator Vitalik Buterin slams ‘anarcho-tyranny’ of cryptocurrency regulations, claims ‘useless’ projects are safe while those with a long-term track record are punished

Vitalik Buterinco-founder Ethereum ETH/USDrecently expressed his concern about the current state of cryptocurrency regulation, especially in the United States.

What happened: Responding to a user on the 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 that provide clear explanations of returns and customer rights are punished for being a “security.”

“The incentive gradient that this ‘anarcho-tyranny’ creates ends up worse for the cosmos than outright anarchy or outright tyranny,” a cryptocurrency technologist noted.

While Buterin did not directly target any project, his comments seemed to be aimed at memecoins, particularly those launched by celebrities. He has previously questioned the motives behind these efforts.

See also: Roaring Kitty Dog Post on X Doesn’t Do Much for Dogecoin, Shiba Inu, But It Sends This Cat-Themed Cryptocurrency Up

Buterin added that he would prefer to see the industry evolve in a direction where releasing a coin without a long-term goal requires more scrutiny and projects with a clear long-term vision are encouraged.

Why is this important: Buterin’s comments come after the SEC filed a lawsuit against ConsenSysblockchain software company, for alleged violations of federal securities laws. The SEC alleges that ConsenSys failed to register as a broker-dealer and failed to register the offer and sale of securities, raising significant investor protection concerns.

Interestingly, the SEC recently closed its investigation into whether Ether is a security, marking a significant victory for the cryptocurrency.

The SEC’s decision came after the SEC in May allowed asset managers to launch ETFs tracking the spot price of Ether.

Reduction: At the time of writing, SOL is trading at $3,491.97, according to data from Benzinga Pro, which is a 3.7% increase over the last 24 hours.

Photo by Alexey Smyshlyaev on Shutterstock.

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