Ethereum co-founder Vitalik Buterin has once again expressed his concerns about the current state of cryptocurrency regulation, especially in the United States.

While interacting with users on the decentralized social media platform Warpcast, Vitalik Buterin made a key argument. He believes that there is a paradox in the current regulatory system that is actually causing damage to the growth and overall health of the cryptocurrency industry. However, this regulatory contradiction not only limits the development potential of the industry, but also may weaken the transparency and fairness of the market.

The current situation and paradox of supervision

At the same time, Vitalik Buterin's observation points out a key problem with the current cryptocurrency regulatory framework: it seems to be more inclined to allow projects that offer unclear promises and potential returns to go unchecked, while imposing stricter regulation on projects that are more transparent, can provide clear return information and define investor rights. However, this regulatory approach may lead to market imbalances, as projects that may be more beneficial to innovation and industry development face more obstacles and restrictions.

In the United States, the Securities and Exchange Commission (SEC), led by Gary Gensler, has launched a number of legal actions advocating that cryptocurrencies be treated as securities and regulated as such. The SEC, under the leadership of Chairman Gary Gensler, has launched a series of lawsuits seeking to classify cryptocurrencies as securities. In the latest action, the SEC filed a lawsuit against Consensys, alleging that the exchange and staking services provided by its MetaMask wallet violated securities regulations.

Many participants in the cryptocurrency industry have expressed opposition to the SEC's use of litigation to establish regulatory rules. They believe that this approach is too coercive and may inhibit innovation and free development in the industry. In particular, in April 2024, the Blockchain Association and the Texas Cryptocurrency Freedom Alliance filed a lawsuit against the SEC in court, arguing that the SEC's regulatory measures were too strict and beyond the necessary scope.

Buterin criticized the U.S. Securities and Exchange Commission's (SEC) regulatory attitude toward the cryptocurrency industry, describing it as an "anarchic despotism." He believes that the SEC's approach has led to a distorted incentive mechanism that may be more harmful to the cryptocurrency industry than no regulation at all or overly strict regulation. He said that this regulatory paradox may lead to the emergence of some products and services that are worthless or lack innovation in the market, thus affecting the healthy development of the entire industry.

Buterin noted in his statement:

“The incentive gradient created by this ‘anarchic tyranny’ will ultimately lead to worse consequences for the space than either pure anarchy or pure tyranny.”

Call for a clearly defined regulatory framework

Therefore, Buterin called for a reform of regulatory strategies and emphasized that token issuances that lack a clear long-term value proposition should be defined as projects with higher risks. In contrast, projects that can provide clear and credible long-term development plans and follow industry best practices should receive more support and protection. Such suggestions are not only reasonable, but also help create a good environment conducive to the development of truly innovative products.

Buterin said that achieving this regulatory balance requires sincere and open cooperation between regulators and the cryptocurrency industry. He pointed out that only through joint efforts and dialogue between the two sides can a regulatory system that both promotes innovation and ensures the rights and interests of investors be built. Such cooperation is essential to promoting the healthy development of the cryptocurrency industry.

Buterin has always advocated for clarity and fairness in regulation. He believes that the current regulatory system not only limits the industry's innovation potential, but also may encourage dishonest behavior. He has proposed on many occasions that it is necessary to build a regulatory system that can both support projects with substantive value and protect investors from fraud. Such a regulatory environment is crucial to maintaining market integrity and promoting the positive development of the industry.

His latest views further reinforce his position, emphasizing the need for frank and sincere communication between regulators and participants in the cryptocurrency industry. He believes that through the joint efforts of both parties, a regulatory framework can be built that will increase transparency in the industry, strengthen accountability, and promote long-term stable growth of the cryptocurrency industry. Such cooperation is essential to promoting the healthy development of the cryptocurrency industry.

In short, Buterin advocates a balanced regulatory strategy, emphasizing that regulation should be meticulous and thoughtful, aiming to both stimulate the industry's innovative vitality and protect the legitimate rights and interests of investors. His views continue to provide important guidance and inspiration in the ongoing discussion on the future of cryptocurrency regulation. #加密货币监管 #VitalikButerin #证券归类 #SEC

Conclusion:

Vitalik Buterin's views and arguments on the US cryptocurrency regulatory system highlight the need for urgent reflection on the current regulatory strategy. The balanced and prudent regulatory strategy he advocates not only reflects a deep insight into the potential of the cryptocurrency industry and the risks that may arise from excessive regulation, but also challenges the existing system and provides a vision for the future development of the cryptocurrency industry.

At the same time, Buterin called for a regulatory environment that both stimulates innovation and protects investors, which is not only a challenge to the existing regulatory framework, but also a vision for the future of a cryptocurrency ecosystem full of integrity and transparency. However, it is through such forward-looking guidance and collaborative cooperation within and outside the industry that the road to a strong and responsible cryptocurrency ecosystem can be paved.