EthereumETHVitalik Buterin, co-founder of ), has voiced his dissatisfaction over the U.S.’s approach to cryptocurrency regulation.
Recent studies have shown that the number of people who are able to speak English is increasing. interaction Buterin stated on Warpcast that the current regulatory framework encourages creation of projects with vague and unsubstantiated promises.
Buterin also argued, that if returns on crypto and the rights to them are classified as securities, then it is important that tokens maintain or grow in value.
The Ethereum co-founder also stressed the need for a sincere partnership between regulators and crypto companies.
On June 28th, Jason, an Ethereum Foundation member posted on Warpcast a reflection on a Tweet Buterin had posted in the year 2022 when the frontend regulations debate was taking place.
Tweets are a great way to get the word out. Buterin On the frontend of decentralized (defi), several regulatory measures were proposed that could reduce the number opportunists and improve safety.
These included limitations on leverage and transparency regarding audits, security checks, or contract codes, as well as usage restrictions based on knowledge tests, rather than minimum net worth rules.
Jason shared the article and stated that, despite his doubts about the validity of the regulations Buterin proposed. He invited Buterin to give an update on what he thinks.
Jason suggested a popup display that shows the current tokenomics of a currency before swapping, and links to Etherscan which show how the coin holders got their coins.
Buterin, in a reply to Jason’s question on June 29, highlighted a core problem with crypto regulations. This is particularly true for the U.S.
He noted that although projects making vague claims can run freely, the ones providing specific information on returns and rights will often be classified as security and subject to stricter regulation. The project was described as an “anarcho-tyranny” This is not good for the crypto-space.
It’s always been a challenge to regulate crypto (especially in the U.S.). If you ask people for money and give vague promises of returns, you can get away with it. But if your goal is to tell them a story about where their returns are coming from and what they’re entitled to, you could be in trouble. “a security”
Vitalik Buterin, Ethereum’s co-founder
Buterin is also adamant about achieving a regulatory It is riskier to issue a token in an environment without a clearly defined long-term benefit proposition.
According to him, if crypto tokens are safe they should be able to adhere with best practices and have a long-term view. He noted that to achieve this goal, both the regulators and industry would need to be engaged.
Buterin’s remarks follow a U.S. Judge’s June 28, 2016 decision. dismiss the claim by the U.S. Securities and Exchange Commission (SEC) that secondary sales of Binance’s BNB Tokens are securities.
The Howey Test was used to apply the Howey Test in the SEC Vs. Ripple Case, which emphasized the economic realities of the transactions.
Judge ruled Binance Coin secondary sales are not securities. This is a big win for crypto investors.
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Source: crypto.news