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Ethereum (ETH) co-founder Vitalik Buterin has expressed his dissatisfaction with the way the U.S. handles cryptocurrency regulation. In a recent interaction on Warpcast, Buterin said he believes the current regulatory system promotes the creation of projects that offer vague promises of returns without real substance. Buterin further argued that if crypto returns and rights are categorized as securities, the emphasis should shift towards developing tokens that maintain or increase in economic value. Additionally, the Ethereum co-founder stressed that this shift requires sincere collaboration from both regulators and the crypto industry. It all began on June 28, when a member of the Ethereum Foundation called Jason posted on Warpcast, reflecting on a tweet Buterin posted in 2022 during the debate on Sam Bankman-Fried’s proposed frontend regulation.  Source: Jason on Warpcast In the tweet, Buterin suggested several regulations on the frontends of decentralized finance (defi) platforms that could help reduce the number of opportunists in the industry and enhance safety.  They included limits on leverage, transparency about audits or other security checks on contract code, and usage gated by knowledge-based tests rather than net-worth minimum rules. While sharing the post, Jason stated that he still believed in the value of those regulations proposed by Buterin and invited the Ethereum co-founder to share his current thoughts on the matter.  Jason also proposed the idea of a popup that displays the current tokenomics breakdown of a coin before a swap, with links to Etherscan showing how top holders acquired their coins. Responding to Jason on June 29, Buterin highlighted the core issue with crypto regulation, particularly in the U.S.  He pointed out that projects offering vague promises can operate freely, but those providing clear information about returns and rights are often classified as securities and face stricter regulations. He referred to this as an…

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Filed under: News - @ June 30, 2024 1:16 pm