Vitalik Buterin, the creator of Ethereum (ETH), has voiced his concerns about the regulatory climate surrounding cryptocurrencies, stating that it is becoming an “anarcho-tyranny” that is detrimental to the industry. In a post on the decentralized social network Warpcast, Buterin highlighted the unfair treatment of crypto founders who are transparent about their business models and are targeted by regulators for allegedly issuing unregistered “securities.”
Buterin criticized the current system in the US, where projects that offer vague promises of potential returns without clear explanations are left untouched, while those that provide a transparent story and promises about investors’ rights are labeled as “securities.” He believes that this “anarcho-tyranny” creates a harmful incentive gradient that is more detrimental to the space than either complete anarchy or strict regulation.
Instead, Buterin advocates for a shift towards a system where issuing a token without a clear long-term value proposition becomes the riskier option. He suggests that if projects provide a compelling long-term story and adhere to best practices, they should be considered safe. However, achieving this requires both regulators and the industry to engage in good-faith discussions.
In a recent show of support for the legal battle of Tornado Cash developers Alexey Pertsev and Roman Storm, Buterin donated a significant amount of money. On May 30th, he transferred 30 ETH, worth $113,678 at the time, to the “Free Alexey & Roman” legal fund. Tornado Cash is an Ethereum-based coin mixing service that enables anonymous crypto transactions. The platform faced US sanctions in 2022, with authorities claiming that it facilitated money laundering and posed a threat to national security.
It’s important to note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. All transfers and trades are done at the individual’s own risk, and any resulting losses are their responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice.
