newscrypto

/ethereum #RunANode | control the memes control the minds paragraph.xyz/@chaskin

The main challenge with crypto regulation (esp in the US) has always been this phenomenon where if you do something useless, or something where you're asking people to give you money in exchange for vague references to potential returns at best, you are free and clear, but if you try to give your customers a clear story of where returns come from, and promises about what rights they have, then you're screwed because you're "a security". The incentive gradient that this "anarcho-tyranny" creates ends up worse for the space than either plain anarchy _or_ plain tyranny.

I would much rather see us move to the opposite situation, where issuing a token _without_ giving a clear long-term story for why it will maintain or increase in economic value is the riskier thing, and if you _do_ give such a long-term story and follow basic best practices then you're safe. Actually getting to this will require good-faith engagement, both from regulators and from industry.

Vitalik Buterin criticized the current regulation of digital assets.

Vitalik Buterin has voiced his criticism of the existing cryptocurrency regulations, stating that well-intentioned developers are being cornered.

In his view, projects with vague promises of potential returns are escaping regulatory scrutiny, while honest and transparent projects are immediately classified as "securities."

Buterin called this an anarchy-tyranny, where acting honestly becomes risky. As a result, the industry is attracting less scrupulous projects.

He believes it should be the other way around: regulators should focus more on projects without a clear long-term strategy rather than on those that provide a clear rationale for their economic value.

Source

Vitalik Buterin criticized the current regulation of digital assets.

Vitalik Buterin has voiced his criticism of the existing cryptocurrency regulations, stating that well-intentioned developers are being cornered.

In his view, projects with vague promises of potential returns are escaping regulatory scrutiny, while honest and transparent projects are immediately classified as "securities."

Buterin called this an anarchy-tyranny, where acting honestly becomes risky. As a result, the industry is attracting less scrupulous projects.

He believes it should be the other way around: regulators should focus more on projects without a clear long-term strategy rather than on those that provide a clear rationale for their economic value.

Source https://warpcast.com/vitalik.eth/0xda1c0058