Vitalik Buterin, the co-founder of Ethereum, has blasted US crypto regulations for encouraging “useless things.”
Overly Broad Definitions Stifle Innovation
Buterin criticized the Securities and Exchange Commission (SEC) for its expansive definition of securities, which he believes stifles innovation and incentivizes empty promises. He argues that the SEC’s approach prioritizes speculative ventures over projects with tangible economic benefits.
From Hype to Utility: Redefining Securities
Buterin proposes a solution that would redefine securities in the digital asset space. He suggests focusing on whether tokens are backed by economic activity rather than simply the promise of returns. This shift would encourage the creation of tokens with real-world utility and separate genuine projects from speculative ventures.
Building a Future of Innovation and Regulation
Buterin believes that regulators and the crypto industry need to work together to create a future where innovation can flourish while protecting investors from fraud. He calls for a balance that allows the cryptocurrency industry to mature and deliver on its potential.
The crypto community eagerly awaits the response of regulators to Buterin’s suggestions.
