Ethereum co-founder Vitalik Buterin criticized the existing regulation of cryptocurrencies in the United States as securities and suggested a way to improve it.
In a post on Warpcast, a social platform based on the Farcaster protocol, the programmer described the dilemma into which the current rules drive the creators of projects.
On the one hand, the system actually encourages the creation of useless tokens and promises of uncertain profits, allowing in this case to remain outside the attention of regulatory authorities, Buterin stressed.
On the other hand, if you provide customers with clear information about their rights and the tokenomics of the project, then the product is classified as a security with all the consequences, he noted.
"The gradient of incentives that this 'anarcho-tyranny' creates ultimately turns out to be worse for space than just one of them," Buterin said.
He expressed hope for a transition to the opposite situation, when issuing a token "without providing a clear long-term story about why it will retain or increase its value" would become a more risky business.
On the contrary, conscientious disclosure of information and adherence to basic rules would allow projects to remain "safe" on the part of supervisors.
"In fact, to achieve this, it will require good faith cooperation from both regulatory authorities and the industry," Buterin concluded.
His message was a response to a member of the Ethereum community, Jason Chaskin, who recalled the programmer's tweet with recommendations on combating unfair activity in DeFi. In September 2022, Buterin proposed for this at the frontend level:
limit leverage; transparently inform about the mandatory audit and security checks of the project;restrict access to users with insufficient knowledge through testing.Recall that Buterin called the blockchain a protection against authoritarian regimes, and the head of the CEO of Wintermute, Yevgeny Gaeva, criticized it because of attempts to build "planned socialism."