Ethereum ( ETH ) creator Vitalik Buterin has expressed concerns about the United States’ approach to cryptocurrency regulation, especially its impact on projects like Solana.
In a tweet, Buterin expressed sympathy for the affected projects and said that if Ethereum prevails by excluding other blockchains from exchanges, it will not be a moral or sustainable victory in the long run.
Solana ( SOL ) was classified as a security in the SEC’s lawsuit against Binance and Coinbase. This classification is not unique to Solana, as several other tokens, including Cardano ( ADA ), Polygon’s token MATIC, filecoin ( FIL ), Sandbox’s SAND, and Axie Infinity ( AXS ), were also deemed securities in these lawsuits.
Interestingly, while these tokens have faced scrutiny, Ethereum has not been affected by the SEC crackdown. For many observers, the lack of action on Ethereum is not surprising.
In April, while testifying before the House Financial Services Committee, SEC Chairman Gary Gensler declined to provide a definitive answer on whether Ether should be classified as a security or a commodity. At the time, Gensler continued to reiterate that it depended on the facts and the law.
While some see this as a win for Ethereum, Ethereum co-founder Vitalik Buterin expressed his sympathy for projects like Solana that are facing adverse consequences in a message to his nearly 5 million Twitter followers. Buterin acknowledged the challenges they are currently facing and expressed regret for their unfavorable situation.
Ethereum co-founder Vitalik Buterin said that the actual competition facing the blockchain industry is not with rival chains, but with the rapidly evolving centralized world that is exerting influence. Buterin stressed the importance of this and emphasized that the industry’s focus should not only be on competing with other chains, but also on dealing with the challenges posed by the expansion of the centralized sector.
With the outcome of the litigation still largely unknown, it’s notable that the tweet was timed to coincide with Coinbase firing back at the SEC with a comprehensive 177-page response to the complaint.
Rather than wait until the August 7 deadline, Coinbase submitted its response 40 days in advance. The answer includes a comprehensive preliminary statement outlining Coinbase’s legal arguments seeking to dismiss the case and potentially prompt regulators to reconsider the classification of Solana and Ethereum, as well as other affected projects.
