Vitalik Buterin calls US regulatory stance “anarcho-tyranny” – DiarioBitcoin

The main developer of Ethereum He says the main problem in the US is that if you launch a serious proposal, that project would be labeled as a “worth”. This threatens innovation and only promotes speculative projects.

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• Vitalik Buterin criticised the current state of regulations in the US.
• In its current form, it makes any serious project with future aspirations qualify as a value.
• This constitutes a “anarcho-tyranny” In his view, it threatens serious projects in space.
• The criticism seems to be mainly directed at the SEC, agency that has taken action against the sector

The co-founder and main developer of Ethereum, Vitalik Buterin, harshly criticized the US government for the way it has tried to regulate cryptocurrencies, stating that this doctrine does not promote the development of projects of real utility, and only encourages the launch of initiatives that offer “vague promises of profitability.”

Criticism of regulations in the US

Buterin’s comments came to light during an exchange of views on Warpcast, where the developer shared his perspective on the current state of regulations in the US. He said that for many projects it is difficult to offer a serious value proposition, since if they do so they are automatically labeled as securities, seeing many possibilities closed off and receiving greater persecution from local regulators.

Regarding this, Buterin wrote:

The main challenge with cryptocurrency regulation (especially in the US) has always been this phenomenon where if you do something useless, or something where you ask people to give you money in exchange for vague references to possible returns at best, you’re in the clear, but if you try to give your customers a clear story of where the returns are coming from and promises about what rights they have, then you’re screwed because you’re “a security.”

The developer described this dilemma as a “anarcho-tyranny”which ends up being very damaging to the ecosystem of digital currencies and technology Blockchain:

“I would prefer that we move to the opposite situation, where issuing a token _without_ giving a clear long-term story of why it will maintain or increase its economic value is the riskiest,and if you _give_ that long-term story and follow basic best practices, then you’re safe,” he added.

However, to achieve this, he stressed that a commitment in good faith is needed. “both from regulators and from the industry,” which could be difficult given the current state of the laws in force.

The SEC is the main problem

Buterin’s criticism comes amid the complexity of U.S. regulations, given the stance taken by certain regulators regarding digital currencies.

Perhaps the most notable thing is the position of the Securities and Exchange Commission (SEC) led by Gary Gensler, which has been the main regulator that has taken enforcement actions against projects and exchanges. The agency argues that most digital assets currently in circulation should qualify as securities, so it asks them to comply with current federal regulations to avoid inconveniences.

Until a few weeks ago, the SEC an investigation was open to determine if the cryptocurrency ETH It was classified as a value, due to the interest of some managers in launching ETFs on the stock market. Ethereum cash. In what appears to be an impressive turn of events, the regulator gave the green light to these products when it was thought that they would be rejected, and is currently awaiting the final procedures for these products to begin trading on the local stock exchange.

Currently the arrival date of the ETFs Ethereum to the US market remains a mystery. Although the president of the SEC indicates that the process is continuing as expected, the possible market launch date for these funds has been handled with great discretion.

While the SEC appears to have softened its stance in this area, currently maintaining ongoing court proceedings against Binance and Coinbase. In parallel, it has also taken enforcement actions against entities such as Robinhood, Kraken, Consensys and other companies, accusing them of trading in unregistered securities.

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be appropriate for retail investors, as the total amount invested could be lost. Check the laws of your country before investing.