According to TechFlow, Vitalik said in response to a user on the Warpcast platform that the current regulatory work has basically forced honest cryptocurrency developers into a desperate situation. The main challenge of cryptocurrency regulation (especially in the United States) has always been this phenomenon. If you do something useless, or you ask people to give you money in exchange for vague references to potential returns, then you are free and innocent, but if you try to clearly explain to your customers where the returns come from and promise them what rights they have, then you are finished because you are a "security." The incentive gradient created by this "anarchic tyranny" will ultimately be worse than pure anarchy or pure tyranny.
